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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

Others would counter that growth equity’s rapid ascent was mostly due to the easy money that persisted between 2008 and 2021. Debt financing is much more common, and the GE firm is often the first institutional investor. Many of these firms use debt to fund deals, and they complete bolt-on acquisitions for portfolio companies.

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Growth Equity Interview Questions: Full List, Answers, and Differences vs. Venture Capital and Private Equity

Mergers and Inquisitions

A: Unlike most PE deals, traditional growth equity deals do not use debt and are for minority stakes in companies, but they often have more “structure” via liquidation preferences and preferred stock. Q: Walk me through one of your deals and explain whether you would have invested in the debt or equity offering or acquired the company.