How does growth equity differ from conventional venture capital and leveraged buyouts?
Growth equity investors focus on rapidly growing companies with proven business models. Unlike venture capital firms, they generally avoid investing in early-stage companies with unproven ideas. Growth equity investors also differ from buyout specialists in that they seek to earn returns from growing the business, rather than through financial engineering, restructuring or cutting costs. Growth equity investors succeed when their portfolio companies succeed because everyone’s interests and incentives are aligned.
