Private Debt In Switzerland – Practitioners' Perspective | Key Considerations And Practical Solutions

Introduction

Private debt has become an increasingly relevant financing tool in the Swiss market, particularly for privately held companies, real estate ventures, and bespoke or transitional financing needs. Unlike certain European jurisdictions, Switzerland does not have a banking monopoly on lending, which has contributed to the growing role of private debt. Today, this trend is further accelerated by the tightening of traditional bank lending standards, making it increasingly challenging (and, in some cases, even impossible) for certain borrowers, such as those in financial distress or seeking mezzanine capital, to access conventional credit facilities.

In this context, private debt offers flexibility in structuring, speed of execution, and tailor-made solutions that traditional lenders may no longer be in a position to provide. However, in the absence of standardised instruments and amid a regulatory landscape that is often less prescriptive than in