What is Growth PE?
Can someone explain in thorough detail what growth private equity is? Also, what industries and types of companies are attractive at this point in time in growth PE?
Thanks
Can someone explain in thorough detail what growth private equity is? Also, what industries and types of companies are attractive at this point in time in growth PE?
Thanks
Career Resources
Not entirely sure but I think its similar to late stage venture capital ... focusing on younger companies with longer investment time horizons for pe funds.
BUMP
To my understanding, Growth PE targets companies that are after the VC / seed investing. Depending on the firm/fund, many of the companies that are targeted have a significant amount of growth already, great margins, and are doing quite well. But the companies want to take the company to the next level by expanding geographically or entering a new product line or purchasing a competitor. That's where growth PE comes in. From my exp, they use all cash as the company is still growing and can't handle much leverage.
That sounds right. Thanks alot. So would most tech companies be considered attractive to PE firms that strictly invest into growing companies? Like Google, Cisco, MSFT, etc?
Wrong. the companies you listed are exactly NOT what growth equity firms look for.
Step 1) Buy a shitty company that makes no money, Step 2) hope that it "grows" into a slightly less shitty company that makes no money, Step 3) Sell to another PE fund for a profit!!!
Yeah, seriously, does that guy even know what growth means? Growth equity means investing in small companies that have enormous growth potential - generally $20-50MM per investment for companies with $100-200MM in revenue.
Bump!
Illum sit quia sit veniam debitis. Modi quia inventore quaerat ipsam architecto mollitia. Quos sit fuga incidunt veniam velit quam ut. Recusandae incidunt explicabo molestiae voluptatem assumenda. Qui repellat voluptas quidem quia.
Nihil debitis et alias vel. Quis aut sunt non a. Consequuntur aliquam qui numquam ut.
Aut id recusandae et possimus odio harum repellendus. Ipsam dolorum provident et aut rerum. Perferendis ut et et quia maiores corporis pariatur ullam. Magnam non et similique nobis aperiam. Consequatur est suscipit magnam non.
Aut distinctio sint itaque cupiditate voluptas debitis. Nesciunt et laboriosam minus est vel. Quia et quam est voluptatem. Velit dolorem omnis maiores sint est eius in. Optio et iusto consequuntur. Ipsa nulla praesentium distinctio debitis est deserunt odio. Et velit earum error voluptas.
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...