Swiss pension funds continue to treat venture capital as a satellite exposure within broader private equity programmes rather than as a strategic allocation, according to a partner at consultancy c-alm.
Stefan Beiner, partner at the firm, told IPE that venture capital is typically embedded in globally diversified private equity portfolios rather than carved out as a core holding.
Allocations to private equity, including venture capital, average just 1–2% of total assets among Swiss pension funds, remaining modest relative to other asset classes.
Programmes are generally diversified across regions – the US, Europe and Asia – and across buyout, growth and venture strategies, with a mix of primary, secondary and co-investments.
Dedicated domestic allocations are rare. Beiner said pure “Swiss VC” exposure is uncommon for structural reasons.
Venture capital is perceived as a “high-risk, high-return segment”, used to balance more stable buyout strategies within private equity portfolios, he said.
Long capital commitment periods and pronounced J-curves also weigh on appetite. “For many pension funds, this is challenging both operationally and in terms of accounting,” Beiner said.
Return dispersion between managers is another constraint. “A successful VC allocation therefore requires highly qualified manager selection and corresponding internal resources – which are not always available,” he added.
A study by Swiss think tank Avenir Suisse found that many pension funds lack the in-house specialists needed to invest in innovative companies. It also noted that management costs for venture capital typically range between 2% and 4% per year, compared with 1.5% to 2% in other asset classes.
Regulatory change yet to shift allocations
The domestic market showed signs of momentum last year, with venture capital investment rising 23.9% year-on-year to CHF2.95bn, according to the Swiss Venture Capital Report 2026 published by Swiss Private Equity & Corporate Finance Association (SECA).
However, most investors described the fundraising environment as ‘unfavourable’ to ‘difficult’, according to the report.
In 2022, the Swiss government amended investment rules to allow pension funds to allocate up to 5% of total assets to VC, aiming to stimulate institutional participation. Beiner said the regulatory change has not led to a clear structural increase in allocations.
Switzerland has also not pursued initiatives similar to France’s Tibi programme or Germany’s WIN scheme, both designed to channel institutional capital into start-ups.
In Italy, pension fund association Assofondipensione is working with partly state-owned lender Cassa Depositi e Prestiti to launch a new public-private partnership for venture capital investment, according to a LinkedIn post by its president, Giovanni Maggi.
Beiner said such initiatives may provide targeted incentives, but for many Swiss schemes’ structural considerations – including illiquidity, costs, governance and limited internal resources – remain more decisive than access to a public co-investment vehicle.
