Private Equity Investment Styles

Buyout:

Buyout typically refers to a strategy of making equity investments as part of a transaction in which a company, business unit or business assets is acquired from the current shareholders typically with the use of financial leverage. The companies involved in these transactions are typically mature and generate operating cash flows.

Venture:

Venture capital refers to investments made in immature companies typically start ups, for the launch, early development, or expansion of a business.

Growth:

Growth capital refers to minority investments in mature companies. It is a type of investment suited to a diverse range of growth opportunities, including acquisitions, increasing production capacity, market or product development, turnaround opportunities, shareholder succession and change of ownership situations. Growth capital is much more present in listed private equity as exits from a growth capital position which do not involve a majority holding can be less predictable