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PitchBook Analyst Note: Growth Equity Overview

Q2 2020

PitchBook Analyst Note: Growth Equity Overview

June 25, 2020

PitchBook Analyst Note: Growth Equity Overview
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This analyst note delves into growth equity investment and performance. Given the attractiveness of the strategy for LPs, we have seen a wave of growth equity-focused funds in the space, with $41 billion raised in 2019. This note provides a definition for growth equity as a stand-alone strategy and lays out key characteristics associated with the asset class. Our analysts also utilize performance metrics to describe growth equity as a hybrid between PE buyouts and VC; TVPI and IRR metrics provide LPs with a similar return profile to buyouts but with a lower risk of loss than traditional VC.