What will happen to growth equity with higher rates, perhaps a greater inflation benchmark than historically, and slowing growth?
Would appreciate comments on both venture growth (Series C - Pre-IPO ish, often unprofitable, deals done by venture firms) and classic growth buyout (low leverage, growthy, usually control deals by PE firms).
On one hand, people will demand growth at a greater rate than ever as it becomes harder to achieve. On the other hand, growth will be more expensive and value will be more prevalent. I'm in my MBA and while I enjoy growth investing, I'm not sure if it's wise long term to be focused on growthier asset classes. Perhaps valuations will settle and growth will be the other side of the same coin as value determination rather than a completely (improperly) separate world of valuations.
Said differently, what is the future of "growth" as an "asset class"? Is this the end of the halcyon days?
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