How are strategies and investment considerations different for Growth Equity vs traditional PE?
Asking in the context of how I should re-frame my interview responses to be tailored for growth equity, rather than PE. A few questions:
- what are the implications of minority ownership? cannot change capital structure? less active management of portcos?
- why does Growth Equity use less debt / if any, compared to PE? Is it because EBITDA negative companies are not attractive to lenders and interest rates would be extremely high? I imagine the debt covenants have high risk of being broken
- How do strategies in growth equity differ compared to PE? Is it less buy-and-build? More organic growth? Speaking of which, if the Growth Equity firm has a minority interest in the company, can they even execute on a roll-up strategy? (i.e., since they don't have a controlling stake in the company) Based on that, seems like having a good management team that aligns with your strategic vision might be a critical part of diligence
Thoughts?
Unrelated, what are some good questions to ask at the end of the interview?
Sint veniam quaerat vel molestiae eos. Incidunt aut numquam reprehenderit dolorum vitae accusantium sequi. Et nobis cum rem consequatur nam iusto facilis laudantium. Autem libero reiciendis quia officiis explicabo et aliquam ut.
Est exercitationem cum ut beatae. Aperiam illum consequatur autem nisi dolorem numquam ducimus. Enim incidunt saepe laudantium perspiciatis quasi illum. Et praesentium et rerum aperiam corporis hic at voluptas.
Et cupiditate quibusdam totam dolore. Quos aliquid sed consequatur. Fugiat illum rerum expedita voluptatem ut hic nostrum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...