Growth equity

Of primary interest will be high-growth tech businesses that prove their mettle 'as the tide goes out,' says Leon Pedersen, CPPIB's new head of growth equity.

The fund's anchor investor is LGT Group.

Fund IV's target was not disclosed. It is, however, expected to seek roughly the same amount raised by its predecessor: $2.6bn.

Though increasing in popularity, growth equity investing poses unique issues for sophisticated investors, including the need to research alternative approaches to exit strategies.

Technology, the rise of entrepreneurs, and globalised business models have transformed the growth equity space in recent years, say Bill Ford and Graves Tompkins of General Atlantic.

In a world of unprecedented innovation and technology advancements, demand for growth capital is soaring, says Phil Guinand, partner and head of Permira Growth Opportunities.

Wildly successful growth equity may wilt a bit in the short term as beaten-down tech valuations and other macro concerns prevail. But expect growth equity's ascent to continue, GPs told Buyouts, powered by digitalization trends.

Mainsail Partners VI is seeking to make investments between $30 million to $60 million apiece.

TPG’s growth platform was a focus of capital raising in 2021. It collected $4.9bn in all, much of it accounted for by the close of TPG Growth V at $3.6bn, above a $3.5bn target.

BlackRock has raised $22 million for its new growth equity fund, according to an SEC filing.