Equity Stakes refer to the percentage of ownership that private equity or venture capital firms acquire in a company they invest in. These stakes are typically made through preferred stock or convertible debt that converts into equity. Venture firms may take minority equity stakes of 10-30% in early-stage startups or growth equity rounds. Private equity firms acquire majority equity stakes of 51% or greater in more mature companies through leveraged buyouts. The larger the equity stake, the more control, voting power, board seats, and influence the investor has in the company. Large stakes also increase the returns if the company appreciates in value. However, equity stakes come with risk - investors can lose their entire investment if the company fails. The goal is to sell the equity stake for a profit through an acquisition, IPO, or other liquidity event.
At our latest 0100 Conference Mediterranean, we gathered experts from Lombardy’s investment ecosystem, including Andrea Beretta of Cariplo Factory, Gessyca Golia from the Lombardy Region, and moderator Fiorenza Lipparini of Milano & Partners, to discuss the unique appeal of Milan for venture capital (VC) and private equity (PE) investments.
The 0100 Conference Mediterranean Fireside Chat: VC Secondaries – the Market Opportunity and Ways to Select the Right Fund highlighted its unique potential for investors seeking more liquidity and quicker returns. This session featured Nick Hendra from AAF Management, Matt Russell from Vencap, and Luca Mannucci from Sella Venture Partners, who shared insights on the market dynamics of VC secondaries, effective fund selection, and key strategies for mitigating risk while maximizing returns.
LP panels are essential at every conference, especially as fundraising becomes increasingly competitive and challenging. One of the highlights at the 0100 Conference Mediterranean was the panel titled “Attracting LP Investors Outside the Region: Interest in the Regional PE/VC Market from Global Institutional Investors.” In this session, key investors shared insights into the growing global interest in private equity and venture capital markets within the Mediterranean and Southern Europe. Moderated by Francesco Cerruti, Director General of the Italian Tech Alliance, the panel brought together leading figures in the industry, including Emre Karabekirogullari, Director of Investments at Sarona AM; Patrick Aisher, Chairman of Kinled Holding; Benno Tieke, Director of Portfolio Management at Philips Ventures; and Veera Somersalmi, Director of Investor Relations at Bpifrance.
