How do megafund growth equity/growth buyout firms (Insight/GA) compare with traditional megafund buyout firms in comp, progression, culture, future outlook?
Namely referring to MF growth equity/growth buyout firms like Insight, GA, and growth arms of traditional MFs. I believe comp at Insight at the associate level is 350-400k, which is in-line with traditional MF PE. What about for GA? And how does comp progression and carry compare with traditional MF PE at VP level and above? Thoughts on the future outlook of these firms given the current environment?
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It ain't looking good for Insight y'all. They were very active between 2020-2021 and bought everything at the top, and now they are sitting on a huge fund while the venture and growth markets are closed so ya theres nowhere to deploy all the capital. I don't know about GA but hopefully they are in better shape!
Hey, as long as you haven't sold you haven't lost money.
Insight still has a ton of dry powder (16B worth, more than GA at 9B) which will allow them to deploy at the bottom and double down on their best portcos
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Insight sounds too good to be true working 60 hours a week getting paid the same if not more than MF buyout counterparts. How are they doing now and is there anything I'm missing? Anyone have any more info on Insight/GA and growth vs buyout in general?
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Insight and GA are completely different products. Insight is gives LPs who have to write large tickets exposure to venture and venture growth returns. GA is basically growth buyouts where they take typically majority or structured minority stakes for businesses growing 25-35% and can sustain only a clip or two of leverage. If you imagine a seesaw where one side is VC and one is PE, they are on different sides of the seesaw.
Different MFs have different teams according to the same framework. KKR NGT does Series X investments, but is similar to a PE firm in that their ticket sizes are large enough that often they will spin up advisors for the transaction process even if the process is not banked. CVC growth is growth buyouts and is like GA in the regard that they will use light leverage and look for growth-y assets but nonetheless not assets on the venture spectrum.
Everything is a spectrum and at one point or another, if you squint hard enough, you can categorize a firm/team as venture or as private equity. How growthy something is is more of a reflection or where value is coming from rather than an investing mandate / style.
Could you share other MF firms that run strategies similar to Insight? While the MF buyout and growth buyout shops get coverage on WSO, I feel like there’s not enough focus on the minority and venture side. Interested in learning more.
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