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Tomislav Tičić
Episode · #380

VJZG Tomislav Tičić

Guest Tomislav TičićHosted by Darko BukovićMay 3, 2026
About this episode
What you'll hear in this conversation

The term "risky capital" often conjures images of speculative gambles on unproven ideas. But as Tomislav Tičić, partner and board member at Prosperus Growth, explains, the Croatian translation of "private equity" is a "misfortune" that obscures its true nature. His fund isn't chasing long-shot startups; it's a patient, long-term investor in established, mid-sized companies, providing the capital they need to scale, consolidate, or navigate generational shifts. Tičić's work reveals the deeper mechanics of growth funding in a market where few companies are truly large by European standards. He explains why this type of capital is often the only path for Croatian SMEs to reach their next stage, offering not just funds but a strategic partnership. You'll leave understanding the crucial role of equity investment in fostering the next generation of regional leaders, and how patient capital reshapes the very definition of "risk."

Insights from the conversation
What to take from this episode
01
The common term 'risky capital' is a 'misfortune translation,' as Tomislav Tičić calls it. The risk isn't about speculation; it's the position in the capital stack, where equity is last in line for payment, making it the most patient and long-term form of investment a company can get.
02
When private equity enters a company's capital structure, it's 'last in line for payment,' behind employees, suppliers, and banks. This position defines the true 'risk' of this capital: it's not a speculative bet, but an acceptance of the deepest financial exposure in exchange for a share of long-term value creation.
03
Tomislav Tičić describes the fund's relationship with existing owners as a 'marriage of interest.' The point isn't about short-term gains; it's about aligning incentives so both sides work toward the same goal: making the company significantly more valuable in three to five years.
04
Prosperus Growth has an explicit mandate from its investors: no startups, no venture capital, only established companies ready for a growth phase. This clarifies that true growth equity isn't about funding early ideas; it's about scaling proven models that have already found their market.
05
Unlike banks, private equity funds do not demand interest or monthly payments from the companies they invest in. This patient approach means the company isn't burdened by immediate debt service, freeing it to reinvest profits and focus entirely on its growth trajectory.
06
After three decades of entrepreneurship in Croatia, many founders are seeking capital not just for expansion, but for generational transitions – because, as Tičić notes, 'children simply don't see themselves in the business.' The lesson is that the market for growth capital often emerges from the natural lifecycle of a company, not just its ambition.
07
Crucial employees are often invited to participate in the ownership structure, earning 'some shares through their work,' as Tičić puts it. This move goes beyond financial capital; it’s a strategic alignment of incentives to retain and motivate the key talent essential for the company’s future value creation.
08
Most Croatian companies classified as 'large' domestically still fall into the small-to-medium enterprise category by European standards. The implication for growth funds is that their opportunity lies not in chasing traditionally large corporations, but in identifying the scaling potential within these locally significant, yet internationally compact, businesses.
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