Growth Equity
Private Equity glossary · Private Equity Fundamentals
Definition
Minority-stake investment in profitable, rapidly growing companies.
Growth Equity in plain English
Growth equity is investing in companies that are already making money and expanding fast, by buying a minority stake — meaning you own a slice but not the controlling majority, so the founders stay in charge. It sits between two other worlds: venture capital backs risky young startups that may not yet earn a dime, while buyouts take full control of mature companies. Growth equity is the middle lane: the business has proven it works, and the investor's cash is fuel to grow faster — open new locations, hire, expand — rather than a rescue or a takeover. Because you're a passenger, not the driver, you're betting on a team that's already winning.
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