| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 169.60 | 176 |
| Intrinsic value (DCF) | 91.39 | 49 |
| Graham-Dodd Method | 154.80 | 152 |
| Graham Formula | n/a |
Private Equity Holding AG (PEHN.SW) is a Switzerland-based investment firm specializing in private equity fund-of-funds, secondary indirect investments, and selective direct co-investments. The company strategically invests in venture capital, buyout, special situation, secondary, and balanced funds, avoiding early-stage venture and mega-buyout funds. With a strong focus on technology sectors—including internet, telecommunications, IT, life sciences, semiconductors, and electronics—PEHN.SW targets mid-to-late-stage ventures, middle-market buyouts, and distressed opportunities. Geographically, the firm prioritizes European developed markets (Switzerland, Germany, France, UK), Central and Eastern Europe, Israel, and the U.S. Its investment approach emphasizes developmental-stage companies with over $1 million in revenue, often through offshore subsidiaries. Listed on the Swiss Exchange (SIX), PEHN.SW offers investors diversified exposure to high-growth private equity assets while maintaining a disciplined risk profile.
Private Equity Holding AG presents a niche investment opportunity in the private equity fund-of-funds space, with a conservative beta of 0.2 suggesting lower volatility relative to broader markets. The firm reported solid FY2024 net income of CHF 19.4 million (EPS: CHF 7.8) and a dividend yield of ~1.3% (CHF 1/share). However, negative operating cash flow (-CHF 1.3 million) and high debt (CHF 54.7 million vs. minimal cash reserves) raise liquidity concerns. Its focus on mid-market and tech-oriented private equity provides diversification but exposes investors to sector-specific risks. The fund’s geographic concentration in Europe may limit upside compared to U.S.-centric peers. Valuation appears reasonable at ~8.5x P/E, but the illiquid nature of underlying assets warrants caution.
Private Equity Holding AG differentiates itself through a specialized fund-of-funds model that combines diversification with selective direct co-investments, reducing reliance on single-fund performance. Its avoidance of high-risk early-stage ventures and mega-buyouts aligns with a conservative risk appetite, appealing to investors seeking stable private equity exposure. The firm’s focus on European mid-market tech and life sciences leverages regional expertise but faces stiff competition from larger global players with deeper pockets. PEHN.SW’s offshore subsidiary structure optimizes tax efficiency but complicates transparency. While its CHF 170 million market cap limits scalability, the firm’s concentrated portfolio (Switzerland/Germany-heavy) offers localized insights. However, its lack of early-stage investments may cap upside in high-growth segments, and the secondary market focus could lag in bullish PE cycles. The debt-heavy balance sheet contrasts with peers’ stronger liquidity positions.