What is the relationship with Gold and Private equity?

The price of Gold has smashed through the $800 per ounce level and now seems set on achieving $850 per ounce before year-end. That is where we stand today, but who was it that saw the meteoric rise of this precious metal about to happen back when it was languishing below $300 per ounce? Of Switzerland’s many private equity groups, several groups can claim they saw it coming and made early moves to ‘ride the wave.’

In 2003 Strategic Capital Portfolio Partners AG of Zurich came out and said they were seeking and reviewing many junior mining companies with potential, while Investec was actively aiding Harmony with their acquisition of Avmin and its 42.2% stake in Avgold. Household names have also been active: CSFB Private Equity, a unit of Swiss banking behemoth Credit Suisse Group, had been turning its attention to mid-cap gold companies as early as the year 2000.

The ability to see the next "big thing" is essentially what private equity groups look for. All investors want to be part of that next big thing. Some of these private equity groups actively seek new investors while other are more select and will only allow a limited number of new "members".

In forthcoming articles we will seek to discover the secrets of some of Switzerland’s foresighted Private Equity groups who seem to have the power of looking into tomorrow.

To be continued....