Private equity and venture capital are colliding in one of the hottest alternative investment trends
Growth equity has become one of the hottest corners of the private capital industry, as ever-larger companies eschew public markets and find strong demand among investors desperate for higher-returning bets.
TPG, one of the biggest private equity groups, highlighted growth equity as one of its leading areas of focus in its pre-Christmas filing to go public in 2022, while Permira, a large UK-based buyout firm, recently raised $4bn for its second growth equity fund, more than twice the size of its predecessor fund and almost twice the initial target of $2.5bn.
Brown at EQT stressed that this was not purely a result of the explosion of growth equity funds. “More capital at every stage of investing is allowing companies to stay private longer,” he said. “The venture capital community is also doing larger and later rounds, and investors like BlackRock are also doing more late stage investments on the private side.”
Read more/Source: FT
