A public listing is not the only way to access serious capital. For most Swiss SMEs, it is not even the right one.

Switzerland has no shortage of compelling, well-run companies that need growth capital. What it has in short supply is a realistic path for those companies to access it. A full IPO on SIX is expensive, slow, and designed for companies that are already large. For the many SMEs sitting below that threshold, the gap between bank finance and a public listing has historically been difficult to bridge. It does not have to be.

An IPO on SIX Swiss Exchange requires three years of audited financials under IFRS or a recognised equivalent, a consolidated equity capital of more than CHF 2.5 million, a prospectus, underwriters, legal counsel, and ongoing reporting obligations once listed. The total cost of the process typically runs between two and five percent of the transaction size, before accounting for the management time and distraction involved. For companies raising CHF 200 million or more, that equation can make sense. For companies raising CHF 10 to 50 million, it rarely does. SIX introduced the Sparks segment in 2021 specifically to address this gap with proportionate requirements for SMEs, and while it represents a step forward, even Sparks carries substantial governance, reporting, and compliance obligations that many companies are not yet ready to absorb.

The more practical route for most Swiss SMEs is a structured private placement, and the toolbox available for doing this well has expanded significantly in recent years. A company that needs equity capital but is not IPO-ready has several options worth understanding.

The first is a direct private placement of shares or convertible instruments to qualified investors. This does not require a prospectus if conducted within the exemptions available under the Swiss Financial Services Act, and it can be executed in a fraction of the time and cost of a public listing. The investor base typically consists of family offices, institutional investors, and private equity firms that have appetite for Swiss growth companies and the capacity to conduct proper due diligence. The placement agent's role in identifying, approaching, and managing that investor base is where the outcome is made or lost.

The second option is an AMC or structured note that gives investors economic exposure to the company's performance without requiring a direct shareholding or the legal and governance complexity that comes with it. This is particularly relevant for companies with strong cashflow profiles or asset backing, where the return case can be articulated in fixed income terms rather than equity growth terms. Structured equity solutions can also be layered with warrants or conversion rights to give investors upside participation while preserving the company's flexibility on governance and control.

The third route, relevant for companies with debt-servicing capacity, is a CLN or private bond that raises capital from a group of investors through a securitised debt instrument. This avoids equity dilution entirely, provides a clear maturity and coupon profile for investors, and can often be structured and placed faster than any equity transaction.

ISP's Equity Solutions team works with Swiss SMEs and their advisors to identify the right structure for the capital raise, build the investor presentation, and place the transaction with the right counterparties across ISP's network of over 700 financial institutions. The goal is always to get the company the capital it needs without the overhead of a process it is not ready for. If you are evaluating your options, speak directly to Loric Szalai at ISP Group or read more about ISP equity solutions to understand what a structured capital raise could look like for your business.