Definition
Growth Equity is a type of private equity investment, usually a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets, or finance a significant acquisition
Frequently asked questions
What are growth type equities?
Growth equities are investments in companies looking to grow quickly. They are not starting but need money to get bigger or better.
Is growth equity a minority?
Yes, growth equity is usually a minority investment. Investors get a smaller part of the company, not controlling it.
What is a characteristic of growth equities?
An important feature of growth equities is investing in mature companies aiming for fast growth. They are past the risky startup stage.
Conclusion
Growth equity is a boost for mature companies. It helps them grow, enter new markets, or buy other businesses without the risks of loans.