Selecting Geneva as US-based Highland Capital's first European outpost and nerve centre for most of its future deals across the region will come as a massive shot in the arm for the Swiss financial centre.

Geneva is the capital of Switzerland's - and arguably the world's - private banking sector, and home to countless domestic and foreign banks which are focused on catering to the very wealthy.

Although UBS and Credit Suisse, Switzerland's two leading banks, are based in Zurich, Geneva - with its cosmopolitan air and particularly strong links to the Arab world - has created a niche as a leading private banking centre.

For foreign banks in particular, which are keen to establish a wealth management bridgehead in Switzerland, it is the growing location of their choice.

Although very strong in trade finance as well, especially for raw materials, Geneva has over the years lost ground to Zurich and foreign centres for broader banking and related activities.

While many fund managers - including fund of hedge fund managers - are Geneva-based, most of the hedge funds themselves, for example, are in the US or London.

It is Geneva's access to large amounts of private money and its relatively sophisticated investors that make the city an alluring base, along with its attractive lifestyle by the lake.

Although small, Switzerland is a leading destination for venture capitalists and private equity specialists after funds, particularly in specialist sectors such as pharmaceuticals, medical technology and life sciences.

Add to that its central location, good infrastructure and highly international population, and the appeal is clear.

The Alps are within easy reach for skiing and recreational visits, and Lake Geneva itself offers both sailing and assorted watersports.

In addition - and quite conveniently - Swiss cantons are willing to cut one-off tax deals with rich foreigners, explaining why Lake Geneva and its surroundings are destinations of choice for many expatriate sports stars, entertainers and billionaires.