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

Transforming Sustainability at Ardian into a Core Driver of Operational Excellence and Value Creation

Ardian has been at the forefront of integrating ESG into its investment strategies since 2008, transforming sustainability from a “soft topic” to a core driver of operational excellence and value creation. In this interview, Louise Doucet from Ardian discusses the firm’s comprehensive approach to ESG across its investment cycle, the challenges of ESG reporting in private markets, and the growing role of sustainability in valuations and exit opportunities. She also shares insights into the evolving ESG landscape, including trends in the DACH region and the future of responsible investing.

Building Europe’s Future Tech Leaders: Cipio Partners on Software Growth and Deeptech Opportunities

Roland Dennert of Cipio Partners shares his perspective on the evolving private equity landscape, from the unique growth-stage opportunities in Germany’s vibrant tech scene to the macroeconomic and ESG factors shaping investment strategies. As Europe works to close the gap with the US in growth investing, Cipio's disciplined, forward-thinking approach positions it as a key player in enabling sustainable growth and unlocking potential across software and deep-tech sectors.

0100 Mediterranean Insights #6: Exploring Milan, Lombardy, Italy – A Thriving Investment Ecosystem for Startups and Investors

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.