US President Donald Trump has issued a new directive that is good news for private equity and crypto. Swiss providers are also likely to benefit.
Which investment could earn investors a return of over 45 percent in just one year?
Even over a longer period, this type of investment can generate over 8 percent per year.
Better than stocks
We are talking about private equity, often referred to as ‘locusts’ in this country.
The returns on such unlisted company investments are by no means utopian.
The above-mentioned profits come from the UBS Pension Fund Barometer and show what Swiss pension funds have earned per year with private equity over the past two decades.
It also becomes clear that only stocks have shown a similar performance.
More diversification
US President Donald Trump has now signed a new executive order that makes such investment forms accessible for Americans’ pension savings via so-called 401(k) plans.
This is a similar type of retirement savings plan to Switzerland’s 2nd pillar.
However, due to regulatory requirements, Americans have so far only been able to invest in stocks and bonds, which Trump wants to change in the future with his directive to the US Securities and Exchange Commission (SEC).
Private equity, indirect real estate investments, and crypto assets such as Bitcoin, Ethereum, and others should also be possible as asset classes.
Americans have accumulated around $12 trillion in their 401(k) plans. The investment risk is borne by the pension savers themselves.
However, in an additional document, the US president highlights the higher returns and better diversification of pension savings through his latest directive.
KKR, Blackstone, and Partners Group
In this respect, Trump wants to expand the opportunities for Americans. “Make America Wealthy Again” is the slogan this time around.
Furthermore, the US president is also opening up new customer groups for private equity firms. Following crypto providers, which have been exempted from strict regulation, they will receive a lot of money from small savers in the future.
Well-known providers such as KKR, Blackstone, Apollo, but also Swiss companies such as Partners Group, can therefore look forward to this development.
High fees and illiquid
The industry had already been severely affected by high key interest rates in the recent past, because financing its deals had become virtually unaffordable.
At the same time, exorbitant fees, the illiquidity of their capital investments, and disputes over the valuation of corporate investments had led many institutional investors to turn away.
Private investors are now stepping into the breach for professionals.
Bonds yield hardly any returns
In Switzerland, financial institutions are currently lowering the barriers for private investors with the appropriate risk orientation to invest in such forms of investment.
Starting at 100,000 Swiss francs, for example, they can invest part of their money with Redalpine Venture Partners through the Zurich private bank Maerki Baumann. This also benefit from the venture capital trend as private investors. In the past, millions were required as minimum investment amounts.
As a reminder, even Swiss pension funds have been adding such investments to their portfolios for decades and benefiting from high annual returns.
Loss-making years were rare in the past – in stark contrast to supposedly safe bond investments, as the analysis by the major bank UBS impressively shows in red.
Two-stage investment
Trump is opening up new opportunities for private individuals – and, for part of the financial sector, new investment clients that they did not previously have.
Private equity providers, crypto companies, and non-exchange-traded real estate investments are finding new investors.
However, investors themselves must assume responsibility for the new risks.
In Switzerland, at least investment professionals are still involved in investment decisions when it comes to saving for occupational pensions.
Moreover, once the US president’s executive order has been implemented, Americans could in future invest directly into such more-lucrative, albeit riskier forms of investment.
12.08.2025/kut./ena.
