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Fund of Funds are not yet as common in the small- and mid-cap segment as they are in larger institutional markets – but their relevance is steadily increasing due to the advantages they offer.

Investors are looking for diversification opportunities, especially given the current global economic climate and the complexity of smaller transactions – which they can access through Fund of Funds. Additionally, data-driven approaches increase the success rates of investments and improve fund efficiency.

Penguin Capital invests in the lower mid-cap market, focusing on Fund of Funds and co-investment funds. All investment decisions are made based on data to maximize value for both sides.

How exactly that works, what opportunities and challenges Fund of Funds bring – especially in the small- and mid-cap market – and how Penguin’s approach differs from its competitors, is what I’ll discuss with Nico Zeifang, founder and partner at Penguin Capital.

In this episode, we explore:

• the role Fund of Fund investments play in the small-cap space,
• why co-investments are the perfect complement to this strategy for private equity firms,
• how Penguin selects the right investment funds using a data-driven approach,
• what Nico expects for the future of the small- and mid-cap market in private equity and M&A,
• and much more…

In the first podcast episode of 2025, we are excited to welcome Nico Zeifang, Co-Founder and Partner at Penguin Capital.

Penguin Capital is an investment firm with a competitive edge in the Lower-Mid Market. Backed by 50 entrepreneurial families, we combine data-driven expertise with firsthand entrepreneurial experience, offering our investors unique access to top-tier, oversubscribed Private Equity funds and Co-Investments across North America, Europe, and select global markets.

This podcast episode discusses key topics in private equity and investment strategies. The conversation explores the challenges and opportunities of IPOs, the role of data analysis in investment decisions, and the growing influence of AI on the business landscape. Nico also shares insights into portfolio diversification, the importance of human intuition in technology, and success factors for funds and co-investments, offering a comprehensive view of the evolving investment world.

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Session runs from 11:30 - 12:10 pm in the Yellow Salon.

Penguin Capital's Pei Pei Hsiung hat the pleasure of presenting her latest research paper, "ESG Risk in Private Equity Markets," at the Oxford Sustainable Private Markets Conference at the Saïd Business School, University of Oxford.

Brigitte Dyck and Hanna Rentschler are joined this time by guest Nico Zeifang, partner at Penguin Capital and co-founder of Team Internet AG, one of Europe’s leading AdTech companies. His credo: Without innovation, there is no societal prosperity!

For Nico, strengthening and healthily building company culture is especially important. For him, cultural fit comes first – employees can have completely different lifestyles. He even shares a funny story about an “outsider” who was always a bit different from the rest of the staff and later thanked Nico for creating a culture that still prevails, even after the founders' departure.

However, it becomes increasingly difficult every time an additional management layer is added. Nico offers tips on how to successfully shape culture nonetheless and explains that a company’s vision is more important than annual targets.

Making the big picture visible and understandable to everyone involved helps reinforce the culture. Additionally, he tries to stay connected with employees, even as the company grows.

Brigitte asks him how important stamina and perseverance are, and Nico is convinced: You have to believe in it! The once-in-a-lifetime opportunity will come – but you have to persevere until it does.

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At the CEE Wealth Summit in Vienna, our partner Nico Zeifang took the stage to share a refreshingly honest perspective: "We are bad investors, but good asset allocators." What started as a catchy headline unfolded into a thoughtful discussion on the evolution of investment strategies, especially within family offices and private investors.

Nico walked the audience through Penguin Capital’s journey — from making rather uninformed direct investments, without a clear asset allocation framework, to building a model grounded in academic research and fueled by data-driven signals. This shift, he explained, has been crucial in navigating complex market environments and improving risk-adjusted returns.

Interestingly, he pointed out the paradox of successful investors: many great investors are, in fact, poor asset allocators. Their deep expertise in a single sector often leads to overexposure, which can amplify returns in stable markets but leaves them highly vulnerable to black swan events and sector-specific downturns. It’s a cautionary tale that resonated with many in the audience.

The fireside chat was followed by a lively panel discussion featuring Cornelia Meyer, Pawel Jacel, CFA, Heiner A. Weber, Ekta Tolani, and Antoni Gburek. Together, they explored the challenges and opportunities of wealth preservation, portfolio diversification, and strategic allocation in today’s volatile market landscape.

Highlights from the session included:

• the transition from opportunistic investments to structured asset allocation,
• how data and research shape modern portfolio strategies,
• the risks of over-concentration, even for top-performing investors,
• practical insights for family offices seeking resilience and balance,
• and expert opinions on navigating uncertain markets.

The CEE Wealth Summit brought together an inspiring community of single family offices, private investors, and family business leaders — a powerful reminder that smart allocation strategies are as much about protecting capital as they are about growing it.

At the Zero One Hundred Conference in Prague, our partner Nico Zeifang joined a distinguished panel of industry experts to discuss the evolving role of family offices and high-net-worth individuals (HNWIs) in venture capital. Alongside Tomas Bocek (SPM Invest), Ladislav Sekerka (Consillium Private Investment), Kilian Graulich (infinitas capital), and Daniel Keiper-Knorr (Speedinvest), the conversation tackled both opportunities and challenges of engaging private capital in VC.

While institutional investors still provide the bulk of VC funding, the panel explored the growing potential of family offices as an alternative source of capital. Yet, unlocking this potential requires addressing a fundamental concern: risk. Family offices tend to be cautious, requiring clear value propositions and predictable outcomes to justify their commitment.

This is where Nico offered a bold, contrarian perspective. Backed by over 30 years of data, he argued that private equity offers a faster and more predictable path to liquidity than venture capital – making it a compelling option for family offices seeking stability and clearer returns. His insights sparked a vibrant debate, challenging assumptions and opening new angles on private wealth allocation.

Key themes from the discussion included:

• how family offices can become a powerful funding source for VC,
• the evolving risk appetite of HNWIs,
• what it takes to persuade private investors to commit to venture strategies,
• why private equity might be the better alternative,
• and expert insights on bridging the gap between family capital and venture funds.

One thing is clear: the conversation between family offices and venture capital funds is gaining momentum – and it’s just the beginning.