Growth Private Equity Investment in the Fintech Sector
Often referred to as the intersection between venture capital and leveraged buyouts, growth private equity investment (“growth equity”) has skyrocketed in recent years and continues to draw the attention of limited partners seeking exposure to emerging technology companies with potentially lower risk profiles than those financed at earlier stages of development. In 2018, growth equity investment reached record levels, with $66.1B invested across 1,057 deals in the United States (“U.S.”) alone. 2018 also saw the largest-ever growth equity fundraise with the close of New York-based Insight Venture Partners’ $6.3B technology-focused growth equity fund.[iv] This article will provide an overview of growth equity as an alternative investment asset class, and will also discuss its increasingly important presence in the financial technology (“Fintech”) sector.
This article originally appeared in ABA Business Law Today.