The LP-GP Networking Event 2024, 9 – 11 October, brought together Europe’s private equity and venture capital elite in the scenic city of Dubrovnik. This invitation-only event, hosted by the Croatian Private Equity and Venture Capital Association (CVCA), catered to a select group of leading fund managers (GPs) and end-investors (LPs), whose collective assets under management represent significant capital far exceeding the GDP of many European countries. The event offered exclusive insights into Europe’s emerging investment opportunities, focusing on scaling startups, unicorn creation, and the evolving role of venture capital in driving growth and innovation. With a focus on quality over quantity, the LP-GP Networking Event carefully curated a program for its participants, comprised of conference and networking side-events, as well as exclusive gatherings like the family-office-only breakfast. In addition to networking, the event showcased emerging fund managers and specialised alternative investment strategies, offering participants the chance to discover the next wave of talent and explore niche strategies with potentially attractive returns.
Mirna Marovic, President of CVCA and conference chair, opened the event by highlighting three key messages. First, she stressed that emerging fund managers deserve a chance, as track records can often be overrated or misleading during fundraising. Academic research and commercial data show that emerging managers bring fresh perspectives and innovative approaches that merit attention. Second, she emphasised diversity as a winning strategy, noting that diversity is a value and a proven driver of better outcomes and resilience. Private equity and venture capital funds led by women or mixed teams tend to perform better and carry less risk. Finally, Marovic underscored the unique opportunities in frontier markets, which offer fertile ground for investors, especially when supported by public sector initiatives.
Marija Jerkic of the Croatian Bank for Reconstruction and Development (HBOR) outlined HBOR’s pivotal role in developing Croatia’s private equity and venture capital markets, especially since 2011 with the establishment of the Equity Investment Department. She emphasised the success of key initiatives like CROGIP, CEETT, and CVCi I, which have nurtured a new generation of growth and venture capital fund managers with support from HBOR and the European Investment Fund (EIF). HBOR’s strong multiplier effect has been a driving force, with every euro of public funding attracting six euros in total investments, significantly boosting Croatia’s innovative SMEs and startups. Jerkic also announced future initiatives, including CROGIP II and the Three Seas Initiative, which are expected to launch in 2025. These initiatives will further strengthen the country’s venture capital landscape by introducing new fund managers to support continued growth.
Alicja Hlibowicka from the European Investment Fund (EIF) provided a view from Europe’s largest LP, emphasising that emerging fund managers often deliver top-tier returns and deserve greater investor attention. She also pointed to a shift toward sustainability-focused investment strategies within the European private equity landscape.
In a highly anticipated session, Professor Josh Lerner from Harvard Business School shared key insights into the global venture capital landscape, focusing on three central themes: the venture capital cycle, the rise of AI, and the role of government policy in supporting venture capital markets. Lerner stressed that timing the markets is incredibly difficult, and for end-investors (LPs), a long-term investment strategy in private equity and venture capital, diversified across vintages and strategies, is the most effective approach. He also addressed the growing excitement around AI, cautioning that while it is a transformative technology, its widespread application will take time, and its impact will take time. Lastly, Lerner highlighted the importance of government initiatives in fostering venture capital ecosystems but noted that for every successful public initiative, many others fail. Success in these initiatives requires not only boosting the supply of venture capital but also creating the right conditions for startups and entrepreneurial activities to thrive. Without this fertile ground, even well-intentioned efforts may not achieve lasting results.
Dominic Maier from AXA Venture Partners delivered a realistic assessment of the liquidity challenges in the venture capital space, highlighting the growing need for alternative liquidity solutions. He emphasised the increasing role of secondary markets, LP secondaries, and structured deals as essential tools in addressing these challenges, though they come with higher costs and complexities.
Marija Djordjevic of BlackRock discussed the widening gap between capital calls and distributions, a sign of the ongoing difficulties in achieving timely exits. She noted that this prolonged exit environment is creating pressures on fund managers and investors alike, complicating fundraising efforts and limiting capital flow.
Luka Habek from Esas Holding shared strategies for family office investments in private equity, particularly focusing on the benefits of co-investments. He highlighted how co-investments allow family offices to diversify their portfolios while maintaining more control and reducing fees, making them an attractive alternative to traditional fund investments.
Dariusz Pietrzak of Enterprise Investors presented a sobering view of the CEE region’s private equity fundraising, which saw a 53% decline in 2023, pointing to the growing gap with Western Europe. He stressed mobilising more private capital from local pension funds, insurance companies, and family offices.
Three emerging fund managers showcased their innovative and attractive investment strategies at the LP-GP Networking Event 2024, offering unique approaches in the growing venture capital landscape.
Renata Brkic and Domagoj Oreb of Feelsgood Capital demonstrated their focus on impact-driven investments that create value and deliver profitable returns. With EUR 30 million in committed capital, Feelsgood Capital has invested in 12 portfolio companies in Croatia and Slovenia, positioning itself as a pioneer in the region’s impact investing ecosystem. Their selected portfolio includes companies like 57 Hours, Mindsmiths, Juice Fast, Gameboost, and Spona, proving that social impact can drive successful investment outcomes.
Wiktor Namysl and Jerzy Rozlucki from Orbit Capital presented two novel fund strategies for the CEE region: a growth capital fund targeting scaleups and a venture debt strategy. Orbit Capital’s Growth Capital Fund I has already invested in four unicorns or soonicorns, including Preply, Booksy, Mews, and Rohlik Group, highlighting its ability to attract top-performing scaleups in the region. Their unique approach to supporting high-growth companies through these funds underscores Orbit’s role as a key player in the CEE’s venture capital landscape.
Dan Mihaescu, Founding Partner of GapMinder, outlined the firm’s focus on deeptech investments, positioning it as one of the leading venture capital funds in the CEE region. GapMinder’s portfolio includes high-potential startups across sectors like enterprise automation, cybersecurity, and fintech. With an impressive 85% graduation rate for seed-stage investments and over €180 million in co-investments from global VCs, GapMinder is driving innovation in Romania, with 5 out of the country’s 10 soonicorns coming from its portfolio.
A panel discussion on LP views, moderated by Mirna Marovic, brought together Alicja Hlibowicka (EIF), Carlo Tancredi (EBRD), Zeljka Izdan (HBOR), Dominic Maier (AXA VP), Igor Filipovic (Erste Plavi Pension Funds), and Primoz Kovacic (Prosperita Family Office). Panellists discussed the evolving dynamics of LP-GP relationships, fundraising challenges, and the increasing importance of sustainability and ESG considerations in investment decisions.
Nenad Marovac and Steve Schlenker of DN Capital shared their unique approach to building unicorns, emphasising their “transatlantic bridge” strategy, which helps European startups scale in the U.S. and vice versa. They highlighted their investment in companies like Shazam and Auto1, demonstrating the importance of identifying “outlier” founders who defy conventional expectations.
The Family Office Only Breakfast, hosted by Ignacio Garcia, Founder of Trampoline Family Office, focused on the value of co-investment strategies, where family offices can pool resources, expertise, and networks to access high-quality early-stage ventures while sharing the associated risks. Participants explored shared deal flow opportunities and the operational expertise family offices bring to portfolio companies post-investment.
In conclusion, the LP-GP Networking Event 2024 reaffirmed its role as a leading platform for fostering partnerships and driving future investment strategies across both Europe and the CEE region. The LP-GP Networking Event 2024 brought together key players from Europe’s and the CEE region’s private equity and venture capital sectors, offering critical insights into emerging trends and challenges. With a focus on supporting emerging fund managers, promoting diversity, and leveraging sustainability as a value driver, the event highlighted the evolving strategies shaping the industry. Key discussions covered liquidity challenges, opportunities in AI, and the role of public and private collaboration in fostering growth. Featuring influential LPs and GPs like EIF, EBRD, HBOR and AXA VP, the event underscored the importance of cross-border collaboration for sustainable growth and innovation in Europe and CEE.