Does this strategy have a specific name ?
Hello guys, my question may be dumb for some of you but here I go,
A growth equity fund that I know is raising a new fund with a new strategy but I cant find any other fund that have this approach.
Basically, they will buy companies, that have been struggling to get above 20/30% growth yoy, and will have some dry powder left in the fund to invest in their new portco external growth with M&A in new geographies.
I have a hard time finding PE fund that invest like that.
They just cut cost and improve efficiency. (at least where I am from PE fund seems to just do that).
And GE funds just do late stage venture from what I saw.
Do you have any name of european funds that have this approach ?
Yeah that's called growth equity, as in, you know, injecting capital to accelerate growth.
Yes but as I stated Growth Equtiy funds are more late stage venture than anything and Private Equity firm don't seems to have that type of strategy...
Maybe it's just me and i'm not doing good research idk.
If you have some funds with that type of strategy could you give me the names ? (Ideally europeans funds)
growth equity, no?
or maybe explain more in depth what you mean and maybe offer some examples of what fund you have in mind vs. growth equity.
Not really. Growth equity involves companies actually growing at a decent clip, well above 30% and profitability is not really a factor. Once growth slows down without profitability is when you enter the danger zone. PE firms that focus on this segment are more hairy/turnaround tbh.
Exactly !
Though the fund I am talking about (which has not yet launched this strategy) will focus and profitable but with slow growth, so not turnaround type of strategy.
But from what I saw in another comment it seems to "just" be a buy and build type fund (which from what I read today seems really interesting compared to others strategy)
Looks like a pretty standard buy and build type PE shop... nothing fancy or ground-breaking.
Thanks, do you have any names for europeans funds with this type of strategy ?
I may not be looking at the right places because most of what I can see are cost cutting and improving efficiency type of funds... (which honestly dont seems that interresting to me).
Quite a few MMs in London are buy and build focused, tbh I’m pretty sure every fund in the world would make things more efficiently if possible - wouldn’t you if you could? makes the co more attractive.
thats just typical growth equity. Late ventures literally do this all the time and some buyout funds do this as well. It’s called growth. quite literally in the name. all growth equity funds do this. what are you not understanding
From my understanding growth equity funds just do minority investments in high growth scale up.
I am talking about businesses that have relatively slow growth and majority investments.
But yeah I think its mostly PE with buy and build strategy (which I didnt know of before this post 😀). Which in my region dont seems to be a strategy that many funds adopt.
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