Investments in growth equity are held for a short amount of time, usually between 3 years to 7 years, from purchase to return.
The invested amount can range anywhere from $2M to $50M, depending on the industry. Investors help create value with profitable revenue growth, and want consistent and modest returns for their effort.įirms invest in the millions in exchange for a minority or majority stake in the company. The process minimizes risk while working to maximize returns. The goal of growth equity is to increase the company's revenue and profitability, typically by planning, funding, and growing operations. Growth capital may also come from mutual funds and hedge funds. Expansion capital comes from growth equity firms, private equity firms, and some venture capital firms.
