Is growth equity a subset of PE?
Hoping to get into buyout PE down the road and was updating my LinkedIn. One of my internships was at a multi-billion firm that primarily does growth equity but also has done the occasional LBO when it fits their investment mandate. Is it technically incorrect/poorly perceived to describe this as "private equity" or that fine?
Even growth equity is a subset of private equity. VC is technically a type of private equity as well FWIW. Definitely fine to call it PE IMO.
PE unlike gender is a spectrum.
VC - Growth Equity - LBO - Distressed / SS->
2 scoops / 2 genders
Growth equity is definitely still private equity. Just most people associate the PE with late-staged LBO firms. Growth equity firms could still slap some leverage on a deal but most dont since they're not purchasing the asset entirely, thus not entitled to the FCFs to pay down debt.
Growth equity returns are usually the highest and they assume modest risk. Perfect middle ground in the PE spectrum IMO but the deals are harder to get.
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