How TierTwo Capital opened Swiss mortgage yield to family offices.

Switzerland has a real estate lending market almost no one can invest in: short-duration, first-lien mortgages on existing residential property. Secure, high-yielding, always in demand. But banks and insurers are largely kept out by their own regulation, and the family offices that want this risk and return cannot practically reach it. Direct real estate debt is illiquid and opaque, the opposite of what they invest against.

Oliver Sabljo founded TierTwo Capital in 2020 to lend against these opportunities, first-lien and short duration. The dealflow was there. What was missing was a way to bring capital to it at scale.

Sabljo knew the answer from crypto, where Actively Managed Certificates (AMCs) wrap a strategy into a tradeable security. The same structure could turn a portfolio of Swiss mortgages into a ring-fenced, tradeable certificate with a transparent net asset value. The problem shifted from lending to issuing a security.

GenTwo built it. TierTwo brings the strategy, sourcing the deals, valuing each property at market price through the independent appraiser Wüest Partner, and lending first-lien at an average loan-to-value under 70% at short duration. GenTwo handles the security, the issuance and the lifecycle. The hard part was Lex Koller, the Swiss rules that bar foreign ownership of residential property: the AMC had to be Swiss, which ruled out an offshore domicile and needed a partner agile enough to solve it.

TierTwo Capital can now put its yield in front of the investors it was built for. By the founder's account it is the first in Switzerland to give family offices liquid, first-lien, short-duration exposure to Swiss residential mortgages, a market they could not efficiently enter before. They get a tradeable security with a transparent valuation, and TierTwo can finally bring capital to its dealflow at scale.