Next Steps My ideas for2011/12 11 20 ok bo ar SECA Yearbook2011 Ye SECA Swiss Private Equity & Corporate Finance Association Grafenauweg 10 /P.O. Box4332 CH-6304 Zug T: +41 41 724 65 75 F: +41 41 724 65 50 Makeyour ownnotes. [email protected] /www.seca.ch Makeyourown notes. SECAYearbook 2011 SECASECA Ye Yeaarrbbookook 2011 2011 I. Report from the President 3 II. SECA &PrivateEquity in Switzerland 9 III.Chapters &Working Groups 17 ReportingComitéRomand18 ReportingSeedMoney &Venture Capital 19 Reporting Private Equity 31 Reporting Corporate Finance 45 Reporting Legal &Tax 48 IV. Events &Trend Luncheons 69 V. Financial &Audit Report 75 VI. MembershipReporting 79 Full MembeRs80 Associate Members218 Individual Members283 VII. Articles of Association287 VIII. Model Documentations291 IX.Code of Conduct forPrivate Equity Investments293 X. CodeofConduct for CorporateFinanceProfessionals 311 XI. EuropeanAssociations 313 XII. Key Persons 317 2 SECASECA Yea Yearbrbookook 2011 2011 ChapterI Reportfromthe President 3 SECASECA Yea Yearbrbookook 2011 2011 Report fromthe Chairman fend common senseinthe face of asometimes un- structuredand populist political debate. DearMembers and Readers The Swiss Private Equity andCorporate Finance As- The Swiss M&A volumes have stabilised at CHF 86 sociation (SECA) has 328 members and is the leading billion.They are dominated by afew large deals.With advocate for the Swiss-based industry comprising ven- around CHF 5.2 billion in 12 privateequity transac- ture capital through large private equity houses and tions the investment activitystilllags behind the 2004- corporate finance advisors andlawyers. 2008 period. Leadingindicatorslooks encouraging and are set to growin2011. The aftermath of the financial crisisisstill taking its toll on our industry. Privateequity investments have On the fundraising side2010 proved to be another dif- fallen fromapeakofEUR 65 billion to alow of EUR 19 ficult year for the industry.The majority of private eq- billion in 2009.Anumberofcontradictory forces are uityhousesare focused on working off their outstand- currentlyatplay in the market, and the ultimateout- ing LP commitments. While there are several fund come is difficulttoassess, but it is certainthat apro- managersseeking capital, and many more about to foundchange is taking placeinSwitzerlandand across launch theirfundraising, investors will be reducing the European landscape. TheEuropeanprivate equity their overall number of private equity relationships investment activity is only slowly recovering since ear- and focus on distributing capital to cover existing ly 2010 (see figure 1). commitments. Venture capital especially will remain on alevel too low for the relativesizeand innovative potential of the Swiss economy. According to aSECA research on venture capital in Switzerland only bio- technologyinvestments enjoyed aconsistent invest- ment flow overthe last couple of years(VentureCapi- tal in der Schweiz1999-2009, P. Gantenbein/M.Pe- dergnana/J. Engelhardt, 2010). On the positive side, shrinking discounts to net asset value make secondary opportunities less of acompetitor to primaryfundrais- ing. Figure 1: Investments by European private equity firms, 1996-2010. Source: EVCA/PEREPAnalytics for2007-H1 2010 data. For prior years data: However, thereislight at theend of the tunnel. The EVCA/Thomson Reuters/PwC. Swiss economyhas masteredthe financial crisisina Thepublicationofthe SECA Yearbook 2011inits new much better shapethan most otherdeveloped nations. format is thereforeagainparticularlyrelevant. It The GDP grows well (2.6%FY2010, 2.3% FY 2011e) enables us to feelthe pulse of the Swiss industry by and theinflation rateismodest(0.7% FY 2010, 0.9% FY evaluating, measuringand drawing conclusions on 2011e).Switzerlandsinternational economiccompeti- investment activity,divestments, performance, regula- tivenessisranked very high.Its long-termfiscal pros- tory change andfundraisinginthese turbulent times. pectives look sound andprovide agood investment climate(see figure 2). Every smartinvestor knows There is massive movement on the regulatory front: government debtsare future taxes. Theseare funda- theEuropean AlternativeInvestment FundManagers mental building blocks forour Swiss industry to build Directive (AIFM-D), Solvency II, Basel III and the on. Frank Dodd financial reform bill aresignificantchal- lenges for theSwiss industry as awhole. The force of The current market environmentisshowing clear their combined impact is difficult to evaluate but will signs of recovery.Apickupindealvaluationssignals have effects on operating costs of fund managersand stronger investordemand andarevival in debt mar- transaction costs, the relative competitiveness of Swit- kets. The performance of Swiss private equity manag- zerland as operatingbaseofprivate equity managers, ers is clearly improving andcash distributions are on fundraising initiatives, risk taking andM&A vo- coming through. In thecurrent interest rateenviron- lumes. The SECA has takenaproactive stancetode- ment there are few asset classes like private equity re- 4 SECASECA Yea Yearbrbookook 2011 2011 turning doubledigit IRRs on arolling 10-year and 20- 2. To influencepublicpolicy and raise further the year basis. awarenessofthe economic benefits of corporate fi- nance, privateequity and venture capital. 3. To influenceand work withregulatoryorganiza- tionsand professional associations and lawmakers to createacompetitiveframework for the Swiss privateequityand venture capital industry. DP fG 4. Provide useful services to our membersand com- to municate effectively with them. Percen Regulation Challenges In theface of themost radical regulatory overhaul in the private equity industryhistory, one of the things Figure 2:Explizite/ImpliziteStaatsverschuldungrelativ zu Prozent desBIP. Source: Stiftung Marktwirtschaft, Prof. Dr. B. Raffelhüschen, Ehrbare Staa- of which Iamproud is the determined waythe SECA ten,2010.1 members pulled together to engage in the debate around the proposed EuropeanAlternative Invest- Most of us in the corporate finance and private equity ment Fund Managers Directive (AIFM-D). Thanksto industry, whetherinvestors,entrepreneurs,service providersorbankers,will agree that 2008-2010have the engagement of our Legaland Tax Chapter (Hannes been avery challenging period for our business.How- Glaus, Dieter Wirth, Rudolf Tschäni, Jacques Bonvin) ever, as alwaysintimes of crisis,there are opportuni- we have beenacandid participant in the debate.While ties! there is still some way to go in the complicated legisla- tiveprocess in Europe, there is no question that the combined effort will help protect Swissfund manag- Theprivate equity and corporate financeindustry is ers, companiesand entrepreneurs from disproportion- developing to ahigher level of maturity, andthe bene- al and damaging measureswithin the EU areaaswell fitswillbemanyfor those whotakeadvantage of the as discriminating third country legislation. We have changing environment.How can the SECA contribute taken aproactive approachand engaged not only in to thesuccessfulevolution of this industry? the European arena, but made several initiatives to Our Key Objectives find aconstructive and fast Swiss solution to theup- coming regulations. TheSECA objective is to maintain The wider structure (including ourSuisse Romande access to the large European market andfind local organization)and new initiativesthat SECA adopted measurestomake ourSwiss industry indeed more in 2010 haveallowed it to fulfil awide ranging agenda competitive. Why dont we find ways andmeans to in the year 2010. Making these initiatives work and ef- make Switzerland abetter place for European fund fective willbethe priority of my chairmanship in 2011. managers do business andbasetheir highly qualified By helpingtoexplainthe industrys role, adding value specialisthere? to our members businesses and intelligently work withpolicymakers,wecan indeed ensure thatthe We not only flagged our opinion directly to the Bun- SECA evolves as aforceful opinion leader in Switzer- desrat (Federal Council Executive), but alsoengaged land. To achieve this goalweset four key objectives in meetings with the FINMAFinancial Market Author- forthe coming year: ity, theFederalDepartment of Finance (FDF) and many otherindustryassociations. Furthermore, it was 1. To promote to investorsthe case forinvesting in our objectivetokeep ourmembers informed about Swissprivateequityand venture capital. the upcomingchanges. The sameholds true even though to asmaller extent 1 DieGenerationenbilanzierung wurde Anfang 1990er Jahre in den USA zur langfristigenAnalyse der Fiskal- und Sozialpolitik entwickelt. Beider Me- forthe American DoddFrank Act as the main legisla- thode werden dieausgewiesenen gesamtwirtschaftlichen Budgetposten, wie Renten- undSteuerzahlungen, mitHilfe vonaltersspezifischen Profilen ein- tive response to the financialcrisis.Its scope is very zelner Jahrgänge zugewiesenund dannunter Zuhilfenahme von Bevölke- broad, touchingall aspects of US financialservices. By rungsprojektionen weiter in dieZukunft fortgeschrieben. DieStudiendaten stammen aus dem Jahr 2004 und haben sich aufgrund der Auswirkungen der abolishing the long-standing exemptionthat has al- Finanzkriseineinigen europäischen Ländern wesentlichverschlechtert. 5 SECASECA Yea Yearbrbookook 2011 2011 lowed advisers advising fewer than 15 private funds andthe number of SECA memberships in the Suisse in the US to avoidregistration with the US Securities Romandegrewsignificantly. andExchangeCommission