In the ever-expanding search for returns, private equity sponsors are increasingly turning to new asset classes, geographies and investment focuses. In the past several years, we have seen established funds leveraging their brands to open offices in Asia, India and the Middle East; target specific sectors like retail, social media and healthcare; and raise debt (distressed or otherwise) and hedge funds.
Amid all the action, the asset class that seems to be among the hottest right now is growth equity. In many respects, growth equity is the old new thing. Successful funds such as Summit Partners, TA Associates and General Atlantic LLC cut their teeth on and then defined the success of growth equity investing. As credit became widely available, several growth-focused funds jumped into the land of leveraged buyouts and rode deal volume and easy credit terms into the middle market a few years ago. Recently, however, many of those growth funds have returned to what they know best.
To read the full, original article click on this link: The old new thing (The Deal Magazine)
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