Learn More About Our Services

All you would like to know about your financial projects

Our Expert Team is at Your Disposal to Provide All Answers

General

Reasons to invest in Private Equity : A highly attractive asset class

Investing in unlisted companies, continues to benefit from low correlation with other asset classes, making it a valuable source of diversification for investment portfolios.
Returns are generally higher than those of listed equities due to the nature of these investments, which often involve active management strategies, restructuring or growth of investee companies.
In the US, Private Equity has significantly outperformed the S&P 500 over 5, 10 and 20 years. For example, over a 20-year period, the annualised performance of private equity is +9.9%, compared with +5.9% for the S&P 500. This higher performance is partly explained by access to private companies, often with high growth potential, and operational improvement strategies that are not always available in public markets.

Source: Endowment and foundation data as reported to Cambridge Associates LLC. Index data are provided by Bloomberg Index Services Limited and MSCI Inc. MSCI data provided “as is” without any express or implied warranties.

Recent Private Equity investment returns outperforming listed markets

According to the latest data from Cambridge Associates for the first half of 2023, Private Equity in the US generated an annualised return of 9.8% over 20 years, outperforming the S&P 500, which returned 7.9% over the same period. This confirms the historical trend that Private Equity investments outperform over the long term. In Europe, according to Invest Europe, LBO funds have also delivered strong annualised returns, reaching around 15% per year over several decades, compared with 5-6% for the MSCI Europe (US PE/ VC BENCHMARK COMMENTARY / Private Investment Benchmarks / ENDOWMENTS QUARTERLY).

The opportunity to make a difference

By funding companies that you believe in and allowing them to grow, you are actively involved in turning an idea into reality. As a direct investor, you can get involved in the company’s development if you wish.

Investments in tangible assets

Private equity is not just a financial or virtual product. It gives you real meaning to your asset allocation. You invest in businesses you believe in.

The world belongs to those who invest early.

Une diversification optimale de votre fortune

Investing in Private Equity means taking majority or minority stakes in unlisted companies.
This allows you to diversify your investments while at the same time investing in the real economy, in direct contact with the companies you support.
The aim is to make significant capital gains over the medium to long term by selling all or part of your holding when the company goes public or is sold.
And because you are one of the first shareholders, you benefit most when you succeed.

Sources: Cambridge Associates LLC, Frank Russell Company, and FTSE International Limited. — *Source: Cambridge Associates LLC, Frank Russell Company, and FTSE International Limited.*

Invest Direct focuses on 3 types of Private Equity investments:

Venture capital, which finances young and often technology-based companies, is the best known. We prefer companies with a proven track record (e.g. having raised several rounds of financing)
Growth capital, which supports companies that want to increase their production capacity, expand their sales force or acquire other companies. In this case, we focus on profitable SMEs
Leveraged transactions, where a company is sold to a group of individuals (usually the management). We could find long-term investors to provide these managers with additional equity. They would then buy the business together in a leveraged buy-out (LBO)

Des rendements récents qui dépassent ceux des marchés cotés

D’après les données récentes de Cambridge Associates pour le premier semestre 2023, le Private Equity aux États-Unis a produit un rendement annualisé de 9,8 % sur 20 ans, surpassant ainsi le S&P 500, qui a affiché 7,9 % pour la même période.

Cela confirme la tendance historique observée où les investissements en Private Equity offrent des performances supérieures sur le long terme.

En Europe, selon Invest Europe, les fonds de LBO affichent également des rendements annualisés élevés, atteignant environ 15 % par an sur plusieurs décennies, comparés aux 5 à 6 % pour le MSCI Europe (US PE/ VC BENCHMARK COMMENTARY / Private Investment Benchmarks / ENDOWMENTS QUARTERLY).

L’occasion de faire la différence

En finançant des sociétés qui vous convainquent et en leur permettant de se développer, vous participez activement à la transformation d’une idée en réalité. En tant qu’investisseur direct, vous pouvez le cas échéant vous impliquer dans le développement de l’entreprise.

Des investissements tangibles

Loin des produits exclusivement financiers ou purement virtuels, le Private Equity permet de redonner un véritable sens à votre allocation d’actifs. Vous investissez dans des entreprises auxquelles vous croyez.

Le monde appartient à ceux qui investissent tôt.

Les risques de perte de capital

Our vetting methods mitigate some of this risk. However, as with the stock market (e.g. Enron in the USA or WireCard in Germany), you may lose all or part of your investment.

Liquidity

These companies are privately owned and are not listed on the stock exchange. As a result, you cannot sell your shares on an organised secondary market. However, we encourage companies to organise liquidity periods. This allows you to offer your shares to other subscribers on a regular basis and in full transparency with the companies.

Valuation

Stock market listings provide a market value for your investment on a daily basis, which is not the case with Private Equity. To overcome this disadvantage, our platform provides you with an independent valuation of your holdings on a quarterly basis. However, this valuation may differ (up or down) from the price received in a liquidity event. In addition, access to our platform is restricted to qualified investors.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Advisory board

A committee of experienced individuals and/or representatives of major investors, which provides advisory opinions.

Build-up

Development of a company through external growth.

Business Angel

Someone who puts his or her investment capacity and business experience at the service of the company in which he or she invests.

Buyout

Generic term covering the various types of company takeovers. See BIMBO, LBO, LBU, LMBO, MBI, MBO.

Carried Interest

Profit-sharing compensation paid to fund managers and their employees based on their portfolio’s performance. It generally amounts to 20% of capital gains, payable only once the financial investors have achieved a minimum internal rate of return (hurdle rate).

Closing

The final stage of the investment structuring process, after which the legal documents are signed, the funds are disbursed by the investors and the transaction is completed.

Co-investissement

The simultaneous acquisition of a stake in the same target by several structures, in principle under equivalent price, term and legal conditions.

Data Room

A virtual platform allowing users to share documents securely and acting as a reference for the organisation of the transaction’s due diligence.

Deal flow

Number of deals proposed to an investment team or a platform such as Invest Direct.

Direct investment

Direct purchase of equity in a private company. It allows the investor to have some control over operations and gain privileged access to information. It is usually more profitable than an investment in a fund, but it is also riskier and requires the use of significant human resources.

Discounted Cash Flow

Method of valuing of the company by discounting future cash flows.

Due diligence

Documents enabling an investor to determine the strengths and weaknesses, risks and opportunities of an investment case. They are usually carried out by external experts.

Earn-out

Part of the price paid by the buyer based on future estimated profits of a company. It could be based on EBITDA (earnings before interest, taxes, depreciation and amortisation), EBIT (earnings before interest and taxes) or operating profit projections.

Expansion capital

Equity or quasi-equity investment, generally as a minority investor, intended to finance the development of a company or the purchase of existing shareholders. This aims to support the management in its development strategy with the objective of creating value and liquidity in the medium term.

Follow-on equity

Equity investment to finance the acquisition of the majority of a company. If this operation is carried out through a holding company and financed by bank debt, it is called an LBO.

IRR (Internal Rate of Return)

The actuarial rate of return on an investment where the present value of the positive flows (dividends, interest and proceeds) is equal to the present value of the negative flows (investments).

LBI (Leverage Buy In)

A takeover of a company by an outside person or team using leverage.

LBO (Leverage Buy Out)

Acquisition of a company by its managers associated with equity investors. The financial package includes a greater or lesser proportion of loans, the repayment of which is planned to be exacted from future cash flows.

LBU (Leverage Build Up)

An LBO holding company that acquires companies in the same industry as its original target through the use of debt.

Leverage

A financing technique that consists of paying part of the acquisition price of a company with debt in order to increase the return on the equity invested.

LOI (Letter of Intent)

A document formalising an investor’s investment proposal to the company in which he/she proposes to invest. This offer is not binding on the investor (non-binding offer).

Management fee

A fee paid annually by a fund to the management company, usually between 1.5% and 3% of the amount of funds committed during the fund’s investment period.

MBI (Management Buy-In)

Buying a company with the financial involvement of a new outside management team (LMBI if bank leverage).

MBO (Management Buy-Out)

Buying a company while financially involving the incumbent management team (LMBO if bank leverage).

Mezzanine financing

Financing instruments that rank ahead of equity but whose repayment is subordinated to that of bank, commercial or other debt.

Non-disclosure agreement (NDA)

An agreement signed at the beginning of negotiations between the entrepreneur and/or seller and the investor that defines what information is considered confidential and the obligations of the parties with respect to that information within a given time and place.

OBO (Owner Buy Out)

Acquisition by the company’s owner who partly cashes out while reinvesting in the takeover holding company so as to remain a significant shareholder.

PIPE (Private Investment in Public Equity)

Refers to an investment in a listed company along the practices of Private Equity (forfeiting the immediate liquidity of the stock market, medium-term commitment, privileged access to company information, involvement in strategic decisions).

Secondary transaction

A transaction in which outstanding shares are sold with no new shares issued by the company. It does not bring new financing to the company, as opposed to a primary transaction. It is also referred to as a secondary transaction in the case of the sale of shares in an investment fund by an investor before the end of the life of the fund.

Securitisation

Securitisation is a financial technique that transforms illiquid assets, i.e. assets for which there is no real market, into transferable securities that can be easily traded between financial institutions thanks to an internationally recognised code (ISIN - International Security Identification Number).

Shareholders’ agreement

A document that complements the company’s articles of association, allowing shareholders to organise their relations within the company (exit conditions, protection clauses, etc.). It is confidential, whereas the articles of association are accessible to all.

Stock options

A type of equity right reserved for employees and managers of a company and its subsidiaries.

Success fee

Compensation received by a financial intermediary in the event of the success of the transaction for which it has been mandated.

Syndication

A group formed by several investors to make an investment.

Term sheet

Terms or conditions of an investment (equity stake, governance, etc.)

Turnaround capital

Equity financing of troubled companies. They are poised to return to profitability in the short term.

Venture capital

Equity or quasi-equity investment in young or start-up companies with a high technological content and/or growth potential.

A Company

Signature of the Invest Direct contract
We get to know each other and establish a partnership based on your needs.

Creation of your company profile
You access your personal space to complete your profile, which will serve as a showcase for our community of investors. It must be detailed and include key information such as stage of development, business sector, valuation, type of transaction envisaged, etc.

Expertise
We carry out a study of your company with partner. This exclusive, independent partner provides a rigorous analysis of the financial, strategic and operational aspects of your business.

Operation structuring
Our team of experts provides you with personalised support and guide you in structuring the key parameters of your financial deal. We also offer you the opportunity to securitise your capital for distribution to financial institutions..

Posting of your company page and promotion
Your company is visible on the platform and is included in our catalogue of investment opportunities. Our community of investors can access your profile at any time. We are committed to ensuring that your company attracts the attention of potential investors.

Support
We’re with you every step of the way. Your company profile will remain active and accessible for future funding needs.
We strongly recommend that you update your information regularly so that our community of investors receives your news and remembers you.

We offer a basic analysis and service for a competitive fee of CHF 11,000 as detailed below. We then charge a 4% commission on funds raised through our platform, ensuring that our interests are aligned with your success.

Support, independent assessment and valuation : CHF 11’000

Vendor Due Diligence : Tailored offer

Success fee : 4% of funds raised through Invest Direct

Data Collection

Company fundamentals
Company history
Financial information
Documentation and legal aspects
Business plan (3 to 5 years)
List of partnerships and clients
Intellectual and/or industrial property portfolio
Description of technology
Latest accounts/balance sheets (even unaudited) and those for the last three years

2. Interviews with management

corporate strategy
type of transaction suggested

3. Corporate Analysis

Target Market
Products and Services
Business Model
Balance Sheet and Cash Flow Analysis
Financial Ratios
Cash and Liquidity
Debt and Insolvency
Performance and Viability
Business Plan with Industry Benchmarks
Multi-Year Balance Sheet Analysis
Financial Valuation
Estimation of Future Value

It depends on the availability of documents, but generally between 3 and 6 weeks.

No documents are freely available on our site. A summary document is available to investors registered on our marketplace (private investors, wealth managers). Additional information is generally available subject to the signing of a confidentiality agreement.

Our team of professionals is available to assist you with your financial transaction. This may include legal aspects and/or the financial structuring of your transaction.

Yes, we charge a 4% success fee on funds raised through the Invest Direct platform.

A Qualified Investor

Private Equity is only suitable for investors who are qualified or considered to be qualified Swiss law (LSFin art 5, al.1-2) accepts that anyone who validly declares that he or she has :

the knowledge required to understand the risks of investments as a result of their personal training and professional experience or comparable experience in the financial sector, AND assets of at least CHF500,000.
or assets of at least CHF2,000,000.

Invest Direct is aimed at professional investors who understand and accept the specific characteristics of Private Equity. These investments present significant risks of partial or total loss of capital. A Private Equity allocation should not exceed 10% of the investor’s net assets.

In order to outperform listed markets, the main characteristic of private equity is that it remains illiquid. As such, the duration of your investment generally depends on the company’s lifespan and its successful development. However, the possibility of investing through dedicated investment vehicles with an ISIN code allows you to increase the liquidity of your position. For comparison, when you invest in a fund, it’s often for a minimum of 7, or even 10 to 12 years, as intermediate liquidity is rare and often detrimental to your performance. Private equity giants, however, offer these opportunities… but it’s notoriously impossible to invest reasonable sums in them.

The liquidity announced is not guaranteed, but a company’s willingness to organize/guarantee it is an obvious selection criterion for us. Under the leadership of Invest Direct, companies can establish regular liquidity periods because the securitization of the proposed transactions greatly facilitates access to liquidity. However, it cannot be guaranteed. By way of comparison, when you invest in a fund, it is often for a minimum of 7, or even 10 to 12 years, with intermediate liquidity being rare and often detrimental to your performance. Private equity giants, however, offer these possibilities… but it is notoriously impossible to invest reasonable sums in them.

To the extent that you are investing in private debt, with a return expected at subscription, the latter is predictable.
When subscribing to the capital of a company, this will depend on your entry price and the date of transfer of your shares.

We charge a 4% success fee on funds raised by the company through our community.

Access to our services is free. Simply request to unsubscribe and your profile will be immediately deleted in accordance with applicable Swiss data protection laws.

At no time will your money pass through Invest Direct. Your investment is made directly with the company you have chosen or by your wealth manager via a custodian bank if the transaction is securitized.

A Wealth Manager / Private Banker

We’re actively working to offer ISIN codes for a growing number of transactions. This will help increase their value in your clients’ portfolios. Regardless, if your clients are looking to make direct investments, it’s better to offer them an effective solution than to disappoint them. You’ll then become their “go-to” partner, which could lead to a more profitable relationship.

If your client wishes to invest, it is possible to provide for a subscription commission in the vehicle holding each transaction, in complete transparency and within the limits provided for by the law in force in your jurisdiction.

Despite higher returns than the markets, we understand that Private Equity may remain exotic for some of you.
NWe are working to make this asset class more accessible and transparent. This could take the form of thematic meetings or training sessions with recognized experts, aimed at the following profiles: wealth managers, private bankers whose clients wish to invest.

An Investment Banker / Broker

For an investment bank or an M&A professional mandated by a company

Thanks to our completely independent analysis, you can submit your deal flow to us and focus on the advice you offer your client. You gain productivity by delegating a company’s detailed analysis to us. You integrate those of Apollonian and its 12 analysts into your own services. If we distribute a portion of your transaction to our community of investors, we will charge a 4% success fee on the amount actually invested. Don’t hesitate to contact us for more details.

Present a company that has not immediately planned a financial transaction:

Our partner can evaluate or value a company that will complete a transaction in the future. We will soon make available to companies a tool that will allow them to easily update the report provided.

I am independent and would like to present an investment opportunity to you. Will I be paid for doing so?

We naturally compensate business introducers. This retrocession is made solely on the success fee and varies between 10 and 20% of this commission, depending on your involvement in the project.

Investment Fund

My investment fund has a portfolio of multiple holdings. Can I onboard them all onto the platform?

We can evaluate and value all your investments as a single entity. These documents can also be used for regular reporting purposes for your Limited Partners, ensuring complete independent analysis. This also allows you to use them as a benchmark for a liquidity event occurring during your investment period.

Is it possible to onboard a stake that has not immediately planned an operation on its capital?

An assessment and valuation are not necessarily linked to a financial transaction. A simple data update will be necessary to proceed with a debt issue or a strengthening of the company’s equity.

Join the Marketplace

Contact an Expert