Growth capital is the intermediate stage between venture late-stage transactions and buyout deals. Private equity funds pursuing this strategy look for companies with a strong growth potential seeking to gain market share in their respective market, whether it is through geographic expansion, industry consolidation or organically. Growth managers often follow a buy-and-build strategy, acquiring a company of a significant size, then adding smaller companies to the initial acquisition in order to create a significant player in the industry. Growth managers will support the company’s management in its acquisition plan, negotiating the possible debt financing and in efficiently structuring the consolidated business.
