Growth equity is a Goldilocks

Growth equity performance

Growth's equity's resilience

In this episode of RPM, we're talking about growth equity with partner John Coelho.
However you define "growth," its champions regard it as a proverbial Goldilocks that offers VC upside with buyout-type risk (1:01).
After analyzing 25,000+ private equity deals in SPI, we found that growth delivered a higher multiple than VC and lower loss rates than buyouts (11:05). This was especially true of investments in the software sector, which for several years has been the fastest growing and best performing sector in private equity.
Because growth equity companies tend to be profitable and less reliant upon leverage, we find them to be particularly attractive during periods of market uncertainty (13:21).

Because growth contains parts of both buyouts and VC, and it is in a strong position to benefit from technological tailwinds, it should be an important part of any well rounded private equity portfolio.

In this episode of RPM, we're talking about growth equity with partner <a href="https://www.stepstonegroup.com/members/john-coelho/">John Coelho</a>.
<ul>
<li>However you define "growth," its champions regard it as a proverbial Goldilocks that offers VC upside with buyout-type risk (1:01).</li>
<li>After analyzing 25,000+ private equity deals in <a href="https://www.stepstonegroup.com/technology-solutions/stepstone-private-markets-intelligence/">SPI</a>, we found that growth delivered a higher multiple than VC and lower loss rates than buyouts (11:05). This was especially true of investments in the software sector, which for several years has been the fastest growing and best performing sector in private equity.</li>
<li>Because growth equity companies tend to be profitable and less reliant upon leverage, we find them to be particularly attractive during periods of market uncertainty (13:21).</li>
</ul>
Because growth contains parts of both buyouts and VC, and it is in a strong position to benefit from technological tailwinds, it should be an important part of any well rounded private equity portfolio.

StepStone Group explores the world of Private Markets through conversations with our thought leaders on key developments across private equity, private debt, real estate, and infrastructure. In each episode a member of StepStone’s investment team will discuss the data, trends, and insights helping shape investors' portfolios.

StepStone Group explores the world of Private Markets through conversations with our thought leaders on key developments across private equity, private debt, real estate, and infrastructure. In each episode a member of StepStone&rsquo;s investment team will discuss the data, trends, and insights helping shape investors' portfolios.

RPM - Reflections on Private Markets

StepStone Group explores the world of Private Markets through conversations with our thought leaders on key developments across private equity, private debt, real estate, and infrastructure. In each episode a member of StepStone’s investment team will discuss the data, trends, and insights helping shape investors' portfolios.

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