The Foundation Renaissance PME and its asset manager Vinci Capital announce the launch of their new fund Renaissance Technologies 4 with a total capital of CHF 88 million. The fund targets Swiss industrial and technology privately-held SMEs.
Swiss “private equity” is thus experiencing a surge of interest among Swiss pension funds. Renaissance PME is one of the only investment solutions in this sector, with nearly 20 years’ experience and four investment vehicles. As the sole manager of the Foundation Vinci Capital targets a net rate of return of between 8% and 10% for this fourth vehicle. “The Foundation Renaissance PME offers Swiss pension institutions an opportunity to invest in privately-held Swiss companies with an objective of an annual rate of return higher than the Swiss market for listed shares. The Foundation thus supports Switzerland’s entrepreneurial fabric and makes it more sustainable”, pointed out Johnny Perera, director of the Services division at Retraites Populaires and a member of the Foundation Board of Renaissance PME.
While the Swiss franc’s strength is putting SMEs under pressure, they have proved their remarkable ability to adapt and re-organize themselves. That is what makes them attractive for long-term investors such as pension funds. “Many Swiss SMEs have demonstrated sound know-how in their ability to establish leading positions at the international level in niche and innovative markets”, emphasized Jean Rémy Roulet, president of Renaissance PME and manager of the Caisse Paritaire de Prévoyance de l’Industrie et de la Construction (CPPIC). This new investment group has already made its first investment by financing the succession of Bandi SA, a leading supplier of the watch industry based in the Jura.