Not all Private Equity (PE) is the same. There are two primary strategies:
- Buyout: Involves acquiring a majority stake (control) in a mature company, often using debt (leverage), to restructure, optimize operations, and eventually sell.
- Growth Capital: Involves taking a significant minority stake in a profitable, rapidly growing company without taking full control. The capital is used to fund expansion, market entry, or new product development.
Buyout funds tend to focus on operational efficiency, while Growth Capital focuses on market expansion and revenue growth.
