Fund Structure
What is Growth Equity?
Growth equity is a private investment strategy that provides capital to established, profitable companies seeking to expand — without taking full control as in a buyout. It sits between venture capital and traditional private equity.
Growth equity funds invest in mature companies — typically with proven revenue and a clear path to profitability — that need capital to accelerate expansion, enter new markets, or fund acquisitions. Stakes are usually minority positions, unlike buyouts.
Growth equity has become increasingly popular with both GPs and LPs because it offers venture-like upside on companies with lower execution risk than early-stage startups.
Also known as: growth capital, growth investing