Which Private Capital Firms Provide Growth Equity Funding?

By Taimour Zaman

Growth equity occupies a sweet spot in private capital—it’s not seed stage, but not full buyout either. These firms invest in businesses that already have traction, but still need fuel to scale. For accredited investors, growth equity offers a compelling balance of upside, structure, and downside protection.

Here’s how to think about it—supported by real data—and who the major players are.

What Is Growth Equity, and Why It Matters

Growth equity refers to investments of capital into established, revenue-generating companies (often $10M+ in revenue) that need capital to accelerate expansion—whether into new markets, product lines, or acquisitions. Unlike early-stage VC, these companies have already proven their model; unlike buyouts, they’re not always sold outright or taken private in full-control deals.

The appeal? Investors can participate in the upside while typically avoiding many of the early-stage risks. But growth equity is not risk-free—execution, valuation, and market cycles still matter.

Industry commentary refers to it as “private capital’s overlooked sweet spot.” Cliffwater

Historically, firms like General Atlantic, Summit Partners, and TA Associates are often credited with pioneering this growth capital approach. Growth Equity Interview Guide

Market Size & Growth in Private Credit & Capital

Although growth equity is an equity-based strategy, it’s part of the broader private capital ecosystem, which includes credit, buyouts, venture capital, and more. The private credit space—many growth and capital firms also have debt strategies—has surged:

• As of the end of 2023, private credit AUM was nearly $2 trillion, roughly ten times the level in 2009. McKinsey & Company
• McKinsey analysts suggest that the addressable market for private credit—meaning areas where non-bank lenders can step in—is much larger than its current size, implying future growth. CAIA
• In the private markets more broadly, by mid-2023, total AUM across private equity, venture, credit, etc., reached $13.1 trillion (with “dry powder” capital of ~$3.7 trillion waiting to be deployed). McKinsey & Company

These numbers help show how deeply capital has flowed into alternatives—and how growth equity sits within a booming ecosystem.

Key Growth Equity Firms You Should Know

Here are several leading private capital firms known for growth equity strategies today (with real examples and focus):

• TA Associates: Growth private equity across multiple sectors. Since its inception, TA has invested in more than 560 companies across its five target sectors (technology, healthcare, consumer, financial services, business services). GrowthCap Advisory
• Summit Partners: Growth & venture, typically in tech, healthcare, and growth products. They provide capital and resources to “power growth” of category-leading companies. Summit Partners
• General Atlantic: Global growth equity. Recognized historically among the “Big 3” growth equity names (with Summit & TA) in academic/industry sources. Growth Equity Interview Guide
• Insight Partners, Accel-KKR, Battery Ventures: Focused on software, technology platforms, and scaling companies. These firms often straddle the venture/growth space; many major growth rounds in tech go through them. GrowthCap Advisory

Note: Many of these firms invest across stages (some venture, some buyout) and choose minority or majority stakes depending on the deal. The lines are often blurred.

What These Firms Look For (and What You Should Look For)

From my experience and from how these firms describe themselves:

1. Proven, scalable business model
   They shy away from untested or early-stage experiments—growth equity investors expect metrics, customers, and product-market fit.
2. Strong management or founder alignment
   They prefer to work with teams that have a clear vision, a proven track record of execution, and buy-in.
3. Room to scale
   Whether via geographic expansion, product line growth, or acquisitions, the business needs a growth runway.
4. Financial discipline
   Although growth is the primary goal, they also prioritize margins, sustainable growth, and efficient capital deployment.
5. Exit clarity
   Their role is to grow the business toward an exit (IPO, acquisition, or secondary sale). They pick businesses where those exit paths are credible.

Risks & Challenges in Growth Equity

I’d be remiss not to flag what to watch out for:

• Valuation risk: You may overpay relative to future growth.
• Execution risk: Scaling introduces new challenges (ops, markets, tech infrastructure).
• Liquidity & time horizon: These are illiquid investments; capital is locked until exit.
• Market cycles: Slower growth periods can compress multiples and delay exits.
• Blended strategy risk: Some “growth equity” deals are debt-inflected or have leverage; don’t assume pure equity.

Why Growth Equity May Be Right for Accredited Investors

• It offers upside with more guardrails than pure venture.
• You often join later, when risks are lower.
• You retain exposure to transformational growth stories.
• Many growth firms co-invest, aligning their interests with those of investors.

Take the Next Step: Consult with AltFunds Global

If you’re an accredited investor looking to deploy capital into growth equity—investing in the next wave of scaling companies—but unsure where to start, AltFunds Global can help.

We’ll guide you to firms with strong track records, help you evaluate deal terms, and plug you into paths that match your risk appetite and return goals.

👉 Secure your spot today. Book your private call here.

Let’s work together to identify growth equity opportunities tailored to your portfolio.