Growth Equity

Can someone with industry experience explain the growth equity market? My understanding is that TA, General Atlantic, etc, are among the top funds. Two questions:

1) What types of deals are those funds most commonly doing? GE is this amorphous asset class that goes all the way from growth-stage venture (Series B+) to minority investments in non-venture-backed companies, to buyouts/control transactions. Can someone explain the typical deal type, value, and financing structure of a TA/GA deal? 

2) Other than TA and GA, which funds lead the space?

Most Helpful

Let me start by saying both of these questions have been answered extensively on this forum, so I would encourage you to use the search function and browse prior posts.

I do think there is a meaningful difference between what I would call “growth buyouts” and classic growth equity (some firms do both types). Growth buyouts are EBITDA positive, use leverage, and for all practical purposes are LBOs with a higher growth rate. Classic growth equity is often EBITDA negative (or turns negative in first few years as company ramps up expenses) and is frequently a minority deal (with structure in the security). There are tons of variations and sometimes it is hard to bucket a deal, but I hope this helps. Really at the end of the day, it is a strong organic top-line growth rate that distinguishes this sub-sector from the broader grouping of private equity. In the growth buyout space, the top GE firms will sometimes compete with traditional PE firms for deals and will sometimes exit to PE firms as well. If you look at their websites of both of the firms you mentioned, they just call themselves private equity firms now even though they have a growth equity/VC heritage.

Also, might be helpful to understand how the work differs given that the only real difference is that growth buyout funds are looking at higher top-line growth. Are the companies more interesting? Is there still a heavy emphasis on sourcing, or are these all banked processes? I've read elsewhere that GE is lighter on the technical/quantitative modeling skillset, and heavier on sourcing/market-sizing/etc. Does that hold now that funds like TA are just doing buyouts? Or can you expect to be doing typical modeling/capital structure work if you work there, just like if you were working at a MF?

Et quo modi sit ipsam. Fugit qui sunt modi placeat enim sed quis aut. Maxime voluptatem impedit hic tempora ab.

Facere aut dolorum et et. Et eos nostrum suscipit quo quia. Fugiat dolorem porro eum totam exercitationem vel in. Odit ut eligendi autem exercitationem.

Career Advancement Opportunities

September 2023 Investment Banking

  • Lazard Freres (++) 99.6%
  • Jefferies & Company 01 99.1%
  • Lincoln International 01 98.7%
  • William Blair 12 98.2%
  • Financial Technology Partners 02 97.8%

Overall Employee Satisfaction

September 2023 Investment Banking

  • William Blair 04 99.6%
  • Lincoln International 11 99.1%
  • DC Advisory 05 98.7%
  • Canaccord Genuity 17 98.2%
  • Jefferies & Company 04 97.8%

Professional Growth Opportunities

September 2023 Investment Banking

  • Lincoln International 01 99.6%
  • Lazard Freres 17 99.1%
  • Jefferies & Company 02 98.7%
  • Financial Technology Partners 06 98.2%
  • UBS AG 16 97.8%

Total Avg Compensation

September 2023 Investment Banking

  • Director/MD (6) $592
  • Vice President (33) $392
  • Associates (160) $261
  • 3rd+ Year Analyst (14) $187
  • 2nd Year Analyst (101) $169
  • 1st Year Analyst (307) $167
  • Intern/Summer Associate (48) $167
  • Intern/Summer Analyst (224) $94
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”