Equity Stakes

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.

Blog

Other news you might be also interested in

Constantijn van Oranje on Europe’s Global Edge: Aligning Capital, Talent, and Policy to Lead in AI, Deep Tech, and Digital Sovereignty

As Special Envoy at Techleap, Constantijn van Oranje-Nassau has long championed Europe’s ambition to lead in innovation. In this exclusive interview, he shares his outlook for 2025 and beyond — from the rebound of the IPO market to the rise of deep tech, defense, and AI. He discusses the urgent need for Europe to scale its impact-driven startups, build a more unified tech policy, and rethink investment models to secure long-term competitiveness in critical technologies. With insights on transatlantic dynamics, regulatory hurdles, and the talent imperative, Constantijn outlines a bold vision for how VCs, governments, and industry must align to shape Europe’s future on the global stage.

VenCap: “Q1 2025 Deal Flow Up 40% YoY - The VC Secondary Opportunity”

With deal flow up 40% year-on-year in Q1 2025, the venture capital secondary market is seeing significant growth and rising interest from investors. In this interview, Matt Russell, Investment Director at VenCap, outlines how the firm is capitalizing on this trend. He explains VenCap’s disciplined strategy for accessing top-tier VC-backed companies, the advantages of secondaries over primaries, and why the current market environment presents compelling opportunities for those with the right capital and insight.

Argentum’s Co-Investment Playbook: Turning Risk into High-Conviction Opportunities in Private Equity

As the private equity landscape evolves, co-investments have emerged as a compelling strategy for LPs seeking greater control, reduced fees, and the potential for enhanced returns. In this exclusive interview, Jørgen Blystad, Investment Director at Argentum, shares insights into the firm’s co-investment philosophy, key selection criteria, and how Argentum mitigates risks while leveraging its deep GP relationships across Europe. From buyout strategies to ESG integration, Blystad sheds light on the nuanced approach Argentum takes to ensure long-term success in a competitive market.