Private Equity
Private Equity
The structure, market and business logic
of private investments
Beyond the public markets
A significant share of value creation in business takes place outside the public capital markets. While listed companies are traded daily and remain in constant public view, many innovation-driven companies operate deliberately outside the stock exchange. This is where the private equity market lies.
Private equity refers to equity investments in non-listed companies. The investor acquires shares directly in the company and becomes a co-owner. Unlike publicly traded stocks, there is no continuous market price and the shares cannot be bought or sold at any time. Economic success depends primarily on how the company performs over time, not on short-term market movements.
Switzerland, with its strong research base, technological depth and high level of innovation, plays a particularly important role in this market. Many companies in research-intensive industries remain privately financed for years before taking a possible next step in their development.
Within this segment, Nordstein positions itself as a specialised counterpart for direct private equity investments.
An ownership stake, not a short-term trade
A private equity investment is not a trading position but a long-term commitment. The investor provides equity capital and shares in the long-term success of the company. Where the investment performs well, returns come from value appreciation and possible distributions. At the same time, the investor bears the risks attached to the invested capital.
Unlike publicly listed securities, the focus is not on daily price movements but on the strategic and operational development of the company. Growth, product progress, regulatory milestones, market penetration or a later transaction shape how the value of the investment evolves.
Private equity therefore means participating in real value creation within an operating business. The relevant factors are the business model, the quality of management, market potential and capital structure. This perspective sets private investments fundamentally apart from the liquidity-driven movements of public markets.
A focus on Swiss Life Sciences
Nordstein concentrates primarily on investments in Swiss companies operating in Life Sciences, Medical Technology, Biotechnology and Healthcare.
These industries are shaped by scientific excellence, demanding regulatory standards and long development cycles. At the same time, they benefit from structural growth drivers such as demographic change, technological innovation and rising global demand for medical solutions.
Switzerland holds a leading international position in these sectors. Universities, research institutes and specialised talent provide a strong foundation for innovation-driven companies. Private capital enables these businesses to fund development phases, run clinical trials, expand production capacity or enter new markets.
For investors, this opens access to a specialised market segment that, in public equity markets, is typically represented only by large, established corporations.
Direct investments in practice
Nordstein arranges direct investments only. The investor acquires shares directly in the respective company and holds them as a shareholder under corporate law. The investment carries economic rights, that is, a share in the financial results of the company, and, depending on the structure, also voting rights.
In contrast to a fund structure, the investor does not commit capital to a pooled vehicle but invests directly in a single company. This creates transparency in terms of business model, capital structure and strategic direction.
Investments are generally long-term in nature. An exit typically takes place in connection with a structured event, such as a sale of the company, the entry of a strategic partner, a secondary sale of shares or, where applicable, an initial public offering. Timing and valuation depend largely on market conditions and on how the company develops.
Opportunities and risks
Private equity can give investors the opportunity to participate in the development of growth-oriented companies and to broaden their portfolio beyond traditional equity and bond markets. Because there is no daily market quotation, private investments are not exposed to the short-term price volatility seen on public exchanges.
At the same time, private equity carries substantial risk. The companies involved are often in development or growth phases, in which business models, products or markets are not yet fully established. Delays, regulatory hurdles, additional funding needs or shifts in the market can significantly affect the value of the company.
In the worst case, the entire invested capital may be lost. Private equity is therefore generally suitable only for investors with a long-term horizon, sufficient capacity to bear risk and a clear understanding of how businesses develop.
Nordstein places great importance on presenting both opportunities and risks transparently. Any private equity investment requires careful and independent assessment by the investor.