Sep 17, 2026 · 54 min · 12 segments
Catalytic capital is like the first layer in a lasagna. Funders are increasingly stacking their financing in different layers, to collectively tolerate more risk, and help money reach places it never…
Cilia Holmes IndahlGuestSashaHostJoelHostThe topic for today is...
The relationship between private equity and sustainability and the potential, but also the challenges, I guess.
A lot of our listeners are familiar with it, but not all, and maybe not me either, really.
So maybe you can help me unpack what is private equity and how does it distinguish from, for example, venture capital and so on and so on.
And private equity, it's a way to say that it's not a publicly traded or a stock listed company.
And you buy a company and you have it for, say, seven to 10 years in ownership before you sell it again.
And contrary to when you're stock listed, you need to watch your stock price carefully and be careful about making changes in that ownership period.
I think one of the potential of that ownership is that you can run a process of decarbonization or sustainable transformation in products and services.
But at the other end, you're also looking at returning the fund to your investors.
You have to think about bringing that company to a position where it creates more value and growth.
But you're also, I think, in a position of combining entities and building a stronger whole.
And then the shortfall comes when short-term thinking wins over long-term value creation to my end.
The difference, and this is depending on the US or European framing of it, but normally when you differentiate venture capital from private equity, it's more early stage.
As an owner or investor, you take a smaller ownership stake in the company.
So you own, you know, single or double digit, but not near to having majority and being able to control the company like you might when you go in and buy private companies in a private markets firm.
So it's more of the conviction of the team and what they believe they can build.
So you have a higher chance of losing all your money, but you have also a small risk of getting a lot from that type of investment.
The topic for today is...
The relationship between private equity and sustainability and the potential, but also the challenges, I guess.
A lot of our listeners are familiar with it, but not all, and maybe not me either, really.
So maybe you can help me unpack what is private equity and how does it distinguish from, for example, venture capital and so on and so on.
And private equity, it's a way to say that it's not a publicly traded or a stock listed company.
And you buy a company and you have it for, say, seven to 10 years in ownership before you sell it again.
And contrary to when you're stock listed, you need to watch your stock price carefully and be careful about making changes in that ownership period.
I think one of the potential of that ownership is that you can run a process of decarbonization or sustainable transformation in products and services.
But at the other end, you're also looking at returning the fund to your investors.
You have to think about bringing that company to a position where it creates more value and growth.
But you're also, I think, in a position of combining entities and building a stronger whole.
And then the shortfall comes when short-term thinking wins over long-term value creation to my end.
The difference, and this is depending on the US or European framing of it, but normally when you differentiate venture capital from private equity, it's more early stage.
As an owner or investor, you take a smaller ownership stake in the company.
So you own, you know, single or double digit, but not near to having majority and being able to control the company like you might when you go in and buy private companies in a private markets firm.
So it's more of the conviction of the team and what they believe they can build.
So you have a higher chance of losing all your money, but you have also a small risk of getting a lot from that type of investment.
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