Growth Equity: Preferred Source of Financing
Private equity and growth capital investment is about making companies stronger, but firms can accomplish that in many ways. Writing for PE Hub, Matt Stewart examined the benefits of growth capital (also referred to as “growth equity”) investment.
The article lays out the differences between growth equity and venture capital, and growth equity and private equity acquisitions in digestible charts (see below), noting that for some companies, “growth capital is often the preferred source of financing.” According to Stewart, a company looking , Matt Stewart examined the benefits of growth capital (also referred to as “growth equity”) investment.
The article lays out the differences between growth equity and venture capital, and growth equity and private equity acquisitions in digestible charts (see below), noting that for some companies, “growth capital is often the preferred source of financing.” According to Stewart, a company looking to take the next step may turn to growth capital to boost revenue as well as the potential for increased profitability.
The main takeaway from Stewart’s article is that growth capital investing, though not as well-known as venture capital or buyout acquisitions, represents an important option for investors. Stewart concludes by saying that “by attracting cost-effective capital and a sophisticated and seasoned (but not controlling) partner, growth capital often represents an attractive financing source for companies.”
Source: PE Hub
