Growth equity (or growth capital) sits between venture capital and buyout on the private markets spectrum. It targets companies that have achieved meaningful revenue and often profitability, but require external capital to accelerate growth through organic expansion, geographic entry, acquisitions, or product development — without transferring control to the investor.
Growth equity investors typically take minority stakes (20–40%) and focus on companies with proven business models, strong management teams, and large addressable markets. In Southeast Asia, growth equity has become a dominant strategy as the region's digital economy has produced a large cohort of companies too mature for venture capital but not yet suitable for leveraged buyouts.