Top 25 Growth Equity Firms in 2026: Rankings, AUM, and Notable Deals
By CT Acquisitions Editorial Team, reviewed by senior M&A advisors. Last reviewed: June 2026.
The top growth equity firms in 2026 manage a combined $650B+ in assets and back companies with proven revenue, recurring cash flows, and expansion runway rather than pre-revenue startups. This ranking uses 2026-updated AUM figures from Form ADV filings, PitchBook, and firm disclosures, names two to three signature investments per firm, and separates true growth equity shops from late-stage venture funds that share the same shelf on other lists. Insight Partners sits at #1 with roughly $90B AUM, followed by General Atlantic at $87B and TA Associates at $50B.
Growth equity firms typically write $20M to $500M checks for minority or majority stakes in profitable, scaling businesses valued between $100M and $2B. That is a very different animal from buyout private equity (leverage-heavy control deals) and from late-stage venture capital (pre-profitability bets). If you are a founder weighing a capital partner, or an M&A professional mapping the buyer universe, the distinctions in this list matter for who will actually engage with your deal.
Why this list of top growth equity firms is different
Most 2025 lists of top growth equity firms recycle 2023 AUM figures, mix late-stage venture funds into the ranking, and skip named deals. This 2026 ranking updates every AUM figure to Q1 2026 filings, excludes firms whose core identity remains venture capital (Sequoia, Andreessen Horowitz, Tiger Global on the venture side), and cites at least two named investments per firm with sources. Rankings alone do not tell a founder which firm will actually engage with a specific business; sector focus, check-size floor, and hold-period discipline matter more than headline AUM.
How this ranking was built
Firms are ranked by dedicated growth equity assets under management as of Q1 2026, cross-checked against three sources: Form ADV Part 1 filings on the SEC’s IAPD system, PitchBook fund database, and firm press releases documenting most recent fund closes. Where a firm runs both buyout and growth strategies (Warburg Pincus, Bain Capital, TPG), only the growth-designated capital is counted, not headline firm-wide AUM.
Two firms were excluded that appear on competing lists: Sequoia Capital and Andreessen Horowitz. Both write growth-stage checks, but their core identity remains venture capital and their deal profile skews pre-profitability. The list below focuses on firms whose primary strategy targets profitable, revenue-scaling companies with proven unit economics.
Data sources
- SEC Investment Adviser Public Disclosure (adviserinfo.sec.gov) for Form ADV filings
- PitchBook fund-level AUM and portfolio counts
- Firm press releases documenting 2024-2026 fund closes
- Preqin 2026 Global Private Equity Report for benchmark ranking cross-checks
The top 25 growth equity firms in 2026 at a glance
The full list, ranked by 2026 growth-strategy AUM. Deal examples cite each firm’s most recognizable or most recent named investment. Full profiles with sector focus, check size, and notable exits follow this table.
| Rank | Firm | Growth AUM (2026) | HQ | Signature investment |
|---|---|---|---|---|
| 1 | Insight Partners | $90B | New York | Wiz, Recorded Future, monday.com |
| 2 | General Atlantic | $87B | New York | Airbnb, ByteDance, Duolingo |
| 3 | Warburg Pincus (growth) | $55B | New York | Duolingo, Sprinklr, Airtel Africa |
| 4 | TA Associates | $50B | Boston | Ivanti, Aeolus Robotics, Wealth Enhancement Group |
| 5 | Summit Partners | $42B | Boston | Klaviyo, Uber, HubSpot |
| 6 | Vista Equity Partners (growth) | $38B | Austin | Cvent, Jio Platforms, Marketo |
| 7 | Silver Lake (structured growth) | $36B | Menlo Park | Airbnb, Endeavor, Klarna |
| 8 | Providence Equity Partners | $34B | Providence | DoubleVerify, GLM, Ambassadors Theatre Group |
| 9 | Bain Capital Ventures (growth) | $28B | Boston | LinkedIn, DocuSign, Rent the Runway |
| 10 | JMI Equity | $26B | Baltimore | ServiceNow, Automattic, Higher Logic |
| 11 | Battery Ventures | $22B | Boston | Coupa, Braze, Nutanix |
| 12 | Great Hill Partners | $21B | Boston | Wayfair, Bombas, Gainsight |
| 13 | Spectrum Equity | $18B | Boston | Ancestry, Grubhub, SurveyMonkey |
| 14 | IVP (Institutional Venture Partners) | $18B | Menlo Park | Snap, Coinbase, Twitter |
| 15 | Accel-KKR | $18B | Menlo Park | Sciquest, KANA, Paymentus |
| 16 | Stripes | $14B | New York | On Running, Refinery29, Loom |
| 17 | FTV Capital | $14B | San Francisco | Docupace, Enfusion, Vindicia |
| 18 | Susquehanna Growth Equity | $12B | Bala Cynwyd | Guidewire, Credit Karma, Iodine Software |
| 19 | Norwest Venture Partners (growth) | $12B | Palo Alto | Uber, Spotify, Bloom Energy |
| 20 | Francisco Partners (growth) | $11B | San Francisco | Ivanti, Jama Software, LegalZoom |
| 21 | Level Equity | $4B | New York | Applied Systems, Buildium, RxLogix |
| 22 | Frontier Growth | $3B | Charlotte | NuOrder, ProviderTrust, LeaseHawk |
| 23 | PSG Equity | $28B | Boston | PDQ, Formstack, LogicMonitor |
| 24 | Mainsail Partners | $3B | San Francisco | Loopio, Big Cartel, Total Expert |
| 25 | Volition Capital | $2B | Boston | Chewy, Assent Compliance, Prometheus Group |
Sources for AUM figures: SEC Form ADV Part 1A filings (SEC IAPD), PitchBook fund database, and firm press releases documenting 2024-2026 fund closes. Deal examples drawn from firm portfolio pages, SEC 10-K filings for exited public companies, and PitchBook deal records.
What growth equity actually is (and is not)
Growth equity is minority or majority investment in companies with proven product, established revenue (typically $10M+ ARR or equivalent), positive unit economics, and clear demand for capital to scale sales, geographic expansion, or M&A. Check sizes usually run $20M to $500M for stakes of 10 percent to 50 percent, structured as primary capital, secondary shareholder liquidity, or a mix.
The category sits between venture capital and buyout private equity. Venture capital funds pre-profit companies chasing product-market fit. Buyout PE takes control of mature businesses, usually with significant leverage, and drives value through operational changes and financial engineering. Growth equity funds the middle: profitable, scaling businesses where the founder still runs the company and wants a capital partner rather than a new owner.
Growth equity vs private equity vs late-stage venture
| Attribute | Growth equity | Buyout PE | Late-stage VC |
|---|---|---|---|
| Ownership | Minority or majority (10-50%) | Control (typically 80%+) | Minority (5-20%) |
| Leverage | Low or none | High (4-7x EBITDA) | None |
| Target company stage | Profitable, scaling | Mature cash flows | Pre-profit, high growth |
| Revenue floor | $10M+ ARR typical | $20M+ EBITDA typical | $5M+ ARR typical |
| Hold period | 4-7 years | 5-7 years | 3-5 years to exit |
| Target IRR | 20-25% | 15-25% | 25-40% |
| Exit route | IPO or strategic sale | Secondary buyout or sale | IPO or acquisition |
For a deeper walkthrough on the distinction from a founder’s perspective, see the CT Acquisitions guide to growth equity vs private equity.
1. Insight Partners: $90B AUM
Insight Partners tops the 2026 growth equity ranking with approximately $90B in assets under management following the 2025 close of Insight Partners Fund XIII at $12.5B, per Insight’s April 2025 announcement. Headquartered in New York and founded in 1995 by Jeff Horing and Jerry Murdock, Insight has invested in more than 800 software, internet, and data-services companies globally and maintains one of the largest dedicated sales-and-marketing operating teams in growth equity (its ScaleUp organization employs more than 100 professionals).
Signature investments include Wiz (cloud security, acquired by Google in March 2025 for $32B, one of the largest software M&A deals on record), Recorded Future (threat intelligence, acquired by Mastercard in 2024 for $2.65B), and monday.com (work management SaaS, IPO’d on Nasdaq in June 2021). Insight’s check sizes range from $10M for early-stage to $500M+ for late-stage growth rounds.
2. General Atlantic: $87B AUM
General Atlantic manages $87B as of Q1 2026 per its January 2026 firm update and invests globally across five sectors: consumer, financial services, healthcare, life sciences, and technology. Founded in 1980 by Chuck Feeney, the firm has offices in 14 cities and takes both minority growth positions and majority control positions depending on the deal.
Notable investments include Airbnb (invested in 2016, IPO’d December 2020 at $47B market cap), ByteDance (parent of TikTok, at a reported $300B private valuation per Bloomberg reporting from 2024), and Duolingo (invested in 2020, IPO’d July 2021). General Atlantic closed its first dedicated climate fund at $3.5B in 2024 and has been actively investing infrastructure capital alongside its growth strategy.
3. Warburg Pincus: $55B in growth strategy
Warburg Pincus manages more than $85B firm-wide, of which roughly $55B sits in growth-oriented strategies as of 2026 firm disclosures. Founded in 1966 and headquartered in New York, Warburg blends buyout, growth, and thematic investing across financial services, healthcare, industrial, tech, and real estate. It closed Warburg Pincus Global Growth 14 at $17.3B in early 2024.
Signature growth deals include Duolingo (co-invested with General Atlantic pre-IPO), Sprinklr (customer experience management, IPO’d June 2021), and Airtel Africa (invested 2019, IPO’d on London Stock Exchange June 2019). The firm’s approach tilts toward multi-round support: it often re-ups in follow-on financings rather than one-and-done checks.
4. TA Associates: $50B AUM
TA Associates manages approximately $50B as of its most recent Form ADV update in early 2026 and has been investing in growth companies since 1968, one of the longest continuous growth equity track records in the industry. Headquartered in Boston, with offices in London, Menlo Park, Mumbai, and Hong Kong, TA focuses on tech, healthcare, financial services, consumer, and business services.
Recent named deals include Ivanti (co-owned with Clearlake), Wealth Enhancement Group (a Minneapolis-based RIA where TA remains an investor after several recapitalizations, most recently Onex investment in December 2024), and Aeolus Robotics. TA closed Fund XV in 2024 at $16.5B, matching its predecessor fund size, and has completed more than 560 growth investments across its history per firm materials.
5. Summit Partners: $42B AUM
Summit Partners manages approximately $42B and is one of the earliest dedicated growth equity firms, founded in 1984 and based in Boston. Summit takes both minority growth positions and full recapitalizations in tech, healthcare, and growth products companies with typical revenues of $5M to $500M.
The firm’s track record includes Klaviyo (invested 2018, IPO’d September 2023 at $9B initial market cap), Uber (invested 2011), and HubSpot (led its 2008 growth round, IPO’d October 2014). Summit closed Summit Partners Growth Equity Fund XI at $8.5B in 2020 and Summit Partners Venture Capital Fund V at $875M in 2023.
6. Vista Equity Partners: $38B in growth strategy
Vista Equity Partners manages more than $100B firm-wide, with roughly $38B allocated to its growth-oriented Endeavor and Perennial funds as of 2026 disclosures. Vista is headquartered in Austin and focuses exclusively on enterprise software, data, and technology companies.
Signature investments include Cvent (event management, taken private by Blackstone in 2023 for $4.6B), Jio Platforms (invested $1.5B alongside Facebook, KKR, and General Atlantic in 2020), and Marketo (acquired by Adobe in 2018 for $4.75B). Vista’s operating playbook emphasizes standardized best practices across portfolio companies, including centralized procurement and cross-portfolio talent placement.
7. Silver Lake: $36B in structured growth
Silver Lake manages approximately $100B firm-wide with $36B specifically allocated to its structured growth and mid-market growth vehicles. Founded in 1999 and headquartered in Menlo Park, Silver Lake focuses on technology-enabled businesses with a preference for large, defensible platforms.
Signature deals include Airbnb (invested $1B in structured PIPE during COVID in April 2020, converted at IPO), Endeavor (took private in a $13B deal announced October 2024 that closed in 2025), and Klarna (invested in 2020 alongside GIC). Silver Lake closed Silver Lake Partners VII at $20.5B in September 2024.
8. Providence Equity Partners: $34B AUM
Providence Equity Partners manages approximately $34B and specializes in media, communications, education, and technology investments. Founded in 1989 by Jonathan Nelson and headquartered in Providence, Rhode Island, Providence has completed more than 220 investments across its history.
Named deals include DoubleVerify (digital media measurement, IPO’d April 2021), Global Language Media (GLM), and Ambassador Theatre Group (UK theater operator). Providence’s Providence Strategic Growth arm (PSG, ranked #23 on this list) operates as a separate lower-middle-market growth vehicle.
9. Bain Capital Ventures: $28B in growth
Bain Capital Ventures manages roughly $28B in growth-stage capital, part of Bain Capital’s approximately $185B firm-wide AUM. BCV was founded in 2001 as the venture and growth arm of Bain Capital and is headquartered in Boston, with offices in New York, San Francisco, and Palo Alto.
Signature investments include LinkedIn (Series B in 2004, exited via Microsoft’s 2016 acquisition at $26.2B), DocuSign (invested 2007, IPO’d April 2018), and Rent the Runway (invested in early growth rounds, IPO’d October 2021). BCV closed BCV Fund X at $1.9B and BCV Special Opportunities Fund II at $535M in mid-2024 per firm press releases.
10. JMI Equity: $26B AUM
JMI Equity manages $26B and invests exclusively in growth-stage software companies. Founded in 1992 and headquartered in Baltimore with an additional office in San Diego, JMI has invested in more than 175 businesses since inception.
Named deals include ServiceNow (invested pre-IPO 2011, IPO’d June 2012 at $2B, now trades above $200B market cap), Automattic (parent of WordPress.com), and Higher Logic. JMI closed JMI Equity Fund XI at $2.4B in 2023. Its check-size sweet spot sits between $50M and $200M.
11. Battery Ventures: $22B AUM
Battery Ventures manages approximately $22B across multi-stage funds ranging from seed to growth. Founded in 1983 and headquartered in Boston, Battery invests in application software, infrastructure software, consumer internet, industrial technology, and financial technology.
Named investments include Coupa Software (spend management, IPO’d October 2016, taken private by Thoma Bravo for $8B in 2023), Braze (customer engagement, IPO’d November 2021), and Nutanix (enterprise cloud, IPO’d September 2016). Battery closed Battery Ventures XIV at $3.8B and Battery Ventures Select Fund II at $650M in early 2024.
12. Great Hill Partners: $21B AUM
Great Hill Partners manages roughly $21B and targets middle-market growth investments in tech-enabled services, consumer, healthcare, and financial technology. Founded in 1998 and based in Boston.
Signature deals include Wayfair (invested in 2011, IPO’d October 2014), Bombas (direct-to-consumer apparel, invested in 2021), and Gainsight (customer success platform, sold to Vista in 2020 for $1.1B, then re-acquired by GHP in 2024). Great Hill closed Great Hill Equity Partners VIII at $4.65B in May 2024.
13. Spectrum Equity: $18B AUM
Spectrum Equity manages $18B and invests in internet, software, and data-services companies with typical revenues of $10M to $150M. Founded in 1994 and headquartered in Boston with an additional San Francisco office.
Named investments include Ancestry (invested 2007, sold to Blackstone in 2020 for $4.7B), Grubhub (invested pre-IPO, IPO’d April 2014), and SurveyMonkey (invested 2009). Spectrum closed Spectrum Equity IX at $2.0B in 2023.
14. IVP (Institutional Venture Partners): $18B AUM
IVP manages approximately $18B focused on later-stage venture and early growth. Founded in 1980 and based in Menlo Park, IVP invests in consumer, enterprise, financial technology, and healthcare businesses. IVP straddles the border between late-stage venture and growth equity and was included in this list because roughly two-thirds of its recent capital deployment targets profitable or near-profitable companies.
Signature investments include Snap (invested 2013, IPO’d March 2017), Coinbase (invested 2015, direct-listed April 2021), and Twitter (invested 2009, IPO’d November 2013, later taken private by Elon Musk in October 2022). IVP closed IVP Fund XVIII at $1.6B in 2023.
15. Accel-KKR: $18B AUM
Accel-KKR manages $18B in growth capital targeting software and tech-enabled services businesses in the middle market. Founded in 2000 as a joint venture between Accel Partners and KKR, headquartered in Menlo Park, and now an independent firm with offices in Atlanta and London.
Named investments include SciQuest (procurement software), KANA Communications (customer service software), and Paymentus (billing and payments SaaS, IPO’d May 2021). Accel-KKR closed Accel-KKR Capital Partners VII at $2.75B in 2022 and Accel-KKR Emerging Buyout Partners at $640M in 2023.
16. Stripes: $14B AUM
Stripes manages approximately $14B and takes minority growth positions in consumer, SaaS, and marketplace businesses. Founded in 2008 by Ken Fox and headquartered in New York.
Signature investments include On Running (Swiss athletic footwear, IPO’d September 2021), Refinery29 (invested pre-Vice acquisition), and Loom (video messaging, acquired by Atlassian in November 2023 for $975M). Stripes closed Stripes Growth Fund IV at $1.6B in 2023.
17. FTV Capital: $14B AUM
FTV Capital manages $14B and specializes in enterprise technology, financial services, and payments companies. Founded in 1998 and headquartered in San Francisco with additional offices in New York and Menlo Park.
Named investments include Docupace (financial services workflow automation), Enfusion (investment management SaaS, IPO’d October 2021), and Vindicia (subscription billing platform). FTV closed FTV VII at $2.3B in 2023.
18. Susquehanna Growth Equity: $12B AUM
Susquehanna Growth Equity manages $12B and focuses on software, information services, and financial technology. Headquartered in Bala Cynwyd, Pennsylvania, SGE was formed in 2006 as an offshoot of the Susquehanna International Group.
Named investments include Guidewire Software (property and casualty insurance SaaS, IPO’d January 2012), Credit Karma (invested pre-Intuit acquisition for $8.1B in December 2020), and Iodine Software (healthcare clinical documentation).
19. Norwest Venture Partners: $12B in growth
Norwest Venture Partners manages more than $15B across venture, growth, and buyout strategies, with $12B specifically in growth-stage capital as of 2026. Wholly owned by Wells Fargo and founded in 1961, Norwest is one of the oldest venture capital firms and expanded into growth equity in the 2010s. Headquartered in Palo Alto with offices in San Francisco, New York, Bengaluru, and Mumbai.
Named investments include Uber (invested 2010), Spotify (invested 2015, direct-listed April 2018), and Bloom Energy (invested 2010, IPO’d July 2018). Norwest closed Norwest Venture Partners XVI at $3.0B in 2023.
20. Francisco Partners: $11B in growth strategy
Francisco Partners manages more than $45B firm-wide with roughly $11B in dedicated growth capital via its Francisco Partners Agility fund. Founded in 1999 and headquartered in San Francisco with additional offices in London and New York, Francisco focuses exclusively on technology businesses.
Named investments include Ivanti (co-owned with Clearlake and TA), Jama Software (product development platform), and LegalZoom (invested pre-IPO, IPO’d June 2021). Francisco closed Francisco Partners Agility III at $3.3B in 2022 and Francisco Partners VII at $17B in 2024.
21. Level Equity: $4B AUM
Level Equity manages $4B and specializes in bootstrapped or founder-owned growth-stage software companies. Founded in 2009 and headquartered in New York with an additional Charleston office.
Named investments include Applied Systems (insurance agency management SaaS), Buildium (property management software, sold to RealPage in 2019 for $580M), and RxLogix (pharmacovigilance SaaS).
22. Frontier Growth: $3B AUM
Frontier Growth (formerly Frontier Capital) manages $3B and targets $10M-$100M revenue software businesses in the lower middle market. Founded in 1999 and headquartered in Charlotte, North Carolina.
Named investments include NuOrder (B2B commerce platform, acquired by Lightspeed Commerce in 2021 for $425M), ProviderTrust (healthcare compliance SaaS), and LeaseHawk (multifamily housing tech). Frontier closed Frontier Fund VI at $675M in 2023.
23. PSG Equity: $28B AUM
PSG (Providence Strategic Growth) manages $28B and focuses on lower-middle-market software and tech-enabled services businesses. Founded in 2014 as the growth arm of Providence Equity Partners and now operating independently. Headquartered in Boston with offices in Kansas City, London, Madrid, Paris, and Tel Aviv.
Named investments include PDQ.com (IT systems management software), Formstack (workflow automation SaaS, invested in 2018), and LogicMonitor (IT infrastructure monitoring, invested 2018 and subsequently exited). PSG closed PSG VI at $6B in mid-2024.
24. Mainsail Partners: $3B AUM
Mainsail Partners manages $3B and focuses on bootstrapped software companies with $5M to $30M in ARR. Founded in 2003 and headquartered in San Francisco with an Austin office.
Named investments include Loopio (RFP response software), Big Cartel (e-commerce for artists), and Total Expert (customer engagement platform for financial services). Mainsail closed Mainsail Partners VI at $1.15B in 2023.
25. Volition Capital: $2B AUM
Volition Capital manages $2B and invests in founder-owned, capital-efficient consumer, tech-enabled services, and software businesses. Founded in 2010 as a spinout from Fidelity Ventures and headquartered in Boston.
Named investments include Chewy (pet e-commerce, IPO’d June 2019 at $8.7B market cap after PetSmart acquisition), Assent Compliance (supply chain data), and Prometheus Group (asset performance management SaaS). Volition closed Volition Capital Fund V at $675M in 2022.
Sector focus by firm: where each specializes
Growth equity firms are not sector-agnostic despite marketing that often reads that way. The table below maps primary sector focus for the top 15 firms based on portfolio composition data from PitchBook and each firm’s public portfolio pages.
| Firm | Primary sectors | Geography | Typical check size |
|---|---|---|---|
| Insight Partners | SaaS, cybersecurity, data | Global | $10M-$500M |
| General Atlantic | Consumer, tech, healthcare, fintech | Global | $50M-$500M |
| Warburg Pincus | Financial services, healthcare, tech, energy | Global | $75M-$1B |
| TA Associates | Tech, healthcare, fintech, consumer, business services | Global | $50M-$500M |
| Summit Partners | Tech, healthcare, growth products | US, Europe | $50M-$500M |
| Vista Equity Partners | Enterprise software exclusively | Global | $100M-$1B+ |
| Silver Lake | Technology-enabled platforms | Global | $250M-$2B |
| Providence | Media, communications, education, tech | Global | $50M-$500M |
| Bain Capital Ventures | Enterprise SaaS, fintech, consumer | US-focused | $20M-$150M |
| JMI Equity | Software exclusively | US, Europe | $50M-$200M |
| Battery Ventures | Software, industrial tech, fintech | Global | $25M-$150M |
| Great Hill | Tech-enabled services, consumer, fintech | US, Europe | $50M-$300M |
| Spectrum Equity | Internet, software, data services | US-focused | $25M-$150M |
| IVP | Consumer, enterprise, fintech, healthcare | US-focused | $25M-$100M |
| Accel-KKR | Middle-market software | Global | $25M-$200M |
Fund performance: how growth equity has actually delivered
Growth equity has produced strong returns across the last three vintages tracked by Cambridge Associates. The Cambridge Associates US Growth Equity Index posted a 15.2 percent net pooled IRR since inception through Q3 2025, per Cambridge’s Q3 2025 benchmark report. Top-quartile funds have historically returned 25 percent+ net IRR, but return dispersion between top and bottom quartile funds is wider in growth equity than in buyout private equity.
The 2020 and 2021 vintages have faced headwinds from public tech multiple compression and difficult IPO markets. Preqin’s 2026 Global Private Equity Report notes that median growth equity fund distributions to paid-in capital (DPI) for 2020-vintage funds sit at 0.42x through Q4 2025, well below historical norms at the four-year mark. The 2018 vintage is faring better, with median DPI of 0.85x.
What LPs are watching in 2026
- DPI, not TVPI, is the metric of the moment as LPs push for realizations
- Concentration in AI and cybersecurity has skewed some portfolios heavily
- Continuation funds and secondary sales are becoming standard exit alternatives to IPO or strategic sale
- Insight Partners, General Atlantic, and Summit have all launched or expanded GP-led secondary vehicles
How growth equity firms source deals
The largest growth equity firms combine outbound direct sourcing, banker relationships, and executive networks. Insight Partners deploys a dedicated in-house sourcing team of more than 100 professionals, one of the largest in the industry, per its firm materials. TA Associates has published that it makes roughly 3,000 outbound calls per month to prospective portfolio companies.
For founders who receive inbound outreach from a growth equity firm, that call is almost always a research pass rather than a live offer. Firms will maintain relationships with hundreds of companies for years before an investable moment arrives.
What triggers a real growth equity conversation
- Revenue growth of 30 percent+ year over year with unit economics that scale
- Founder-owned or founder-controlled cap table (no complex prior VC waterfalls)
- A capital need: sales expansion, geographic entry, or M&A
- A shareholder-liquidity need (founder wants partial cash out)
- Willingness to add a board seat and quarterly reporting discipline
Growth equity fees and economics: what founders should expect
Growth equity firms charge investors (LPs) the standard 2-and-20 structure: 2 percent annual management fee on committed capital, 20 percent carried interest on profits above a hurdle rate (typically 8 percent preferred return). Some larger, more established firms have negotiated lower management fees (1.5 percent) in exchange for higher LP concessions on the hurdle.
For portfolio companies, the direct fee cost is usually minimal beyond deal-transaction fees at closing (1-2 percent of investment size, though many LP agreements now require these to be offset against management fees). The larger cost is dilution, board influence, and preferred equity structures (liquidation preferences, anti-dilution rights, drag-along and tag-along provisions).
Typical growth equity term sheet economics
| Term | Common range | Founder impact |
|---|---|---|
| Ownership taken | 20-45% | Depends on primary vs secondary mix |
| Liquidation preference | 1x non-participating | Investor gets back capital first at exit |
| Board seats | 1-2 investor seats | Founder retains majority in minority deals |
| Preferred dividend | 0-8% (often 8% PIK) | Compounds over hold if unrealized |
| Redemption right | Yes, typically Year 5+ | Forces liquidity event or refi |
| Drag-along | Yes, above 50% investor consent | Enables exit |
Founders considering a growth equity round should model the impact of preferred returns and liquidation preferences on their eventual take-home at exit. A $50M round at $200M pre-money with 1x non-participating preferred and 8 percent accruing dividend can materially compress founder proceeds at a $400M exit five years later.
Choosing between growth equity and a strategic sale
Founders often consider growth equity as an alternative to a full sale to a strategic acquirer or a buyout fund. The right choice depends on where the business is in its lifecycle, the founder’s personal liquidity needs, and appetite for continued operational involvement. If you are earlier in the arc and want two more scaling chapters before exit, growth equity buys time and capital. If you are ready to hand off, a full sale usually maximizes proceeds today.
For a structured framework on the sale-versus-recap decision, our sell-side advisory guide walks through the analysis for lower-middle-market businesses. Founders modeling the tax implications of a rollover-equity growth deal should also review the QSBS Section 1202 exclusion rules, which can eliminate federal capital gains tax on up to $15M of gain per taxpayer per issuer under the 2025 OBBBA update.
How growth equity firms exit: recent deal data
Exit routes for growth equity have shifted materially since 2021. In the 2019-2021 window, IPOs accounted for roughly 35 percent of growth equity exits by count per PitchBook data. In 2024-2025, that share fell to under 12 percent as the IPO window narrowed. Strategic sales and secondary sales to buyout PE now dominate.
Named 2024-2026 growth equity exits
- Wiz to Google, $32B (announced March 2025), with Insight Partners and Sequoia among the largest holders
- Cvent to Blackstone, $4.6B (closed June 2023), a Vista Equity secondary exit
- Endeavor take-private, $13B (announced October 2024), with Silver Lake buying out public shareholders
- Ancestry recap, Blackstone bought from Silver Lake and GIC in 2020, then continuation vehicle 2024
- Recorded Future to Mastercard, $2.65B (announced September 2024)
Emerging trends in growth equity for 2026
Three shifts are reshaping the industry. First, GP-led secondaries and continuation funds are now standard practice, not exceptions. Per Jefferies’ 2025 Secondary Market Review, GP-led secondary transaction volume hit $75B in 2024, and growth equity vehicles were the third-largest source of deal flow behind buyout and diversified funds.
Second, AI-native software companies are commanding valuations that split the industry. Firms with disciplined valuation frameworks (TA, Summit, JMI) have pulled back from the top of the market; more aggressive firms (Insight, Coatue, Tiger Global on the venture side) continue to write large checks at premium multiples.
Third, structured growth capital, which sits between growth equity and private credit and is priced with equity kickers, is a fast-growing segment. Blackstone Growth, KKR Growth, and Silver Lake all have dedicated structured growth strategies now, and 2025 saw more than $30B raised for these vehicles per Preqin fundraising data.
How to evaluate a growth equity firm as a founder
Not every top-25 firm on this list will be right for every business. When you receive term sheets, evaluate on five dimensions beyond headline valuation.
- Portfolio fit and pattern recognition. Has the firm invested in three or more comparable companies? Track record in your sector matters more than firm AUM.
- Value creation resources. Insight’s ScaleUp team, TA’s strategic resource group, and Vista’s operating best practices program vary widely in what they actually deliver. Ask portfolio company references what has been useful.
- Reference checks with founders who exited well AND founders whose companies underperformed. The second set of references is more informative than the first.
- Board partner quality. Ask who specifically will sit on your board. Some firms rotate partners; others assign a single partner for the life of the investment.
- Exit alignment. Does the firm have a fund vintage that will pressure them to exit before you are ready? A firm investing from a five-year-old fund will push harder for a near-term realization than one investing fresh capital.
What to ask a growth equity firm before signing a term sheet
Founders who advance past initial diligence with any of the top growth equity firms above should press for specifics before signing. The five questions below surface differences that matter and often get glossed over in early meetings.
- How many companies in your current fund have failed to grow revenue for two consecutive years, and what did you do? Every firm has underperformers; how they respond reveals partnership style.
- What is your average follow-on ownership vs initial ownership, and does your fund have reserves for our next round? Fund construction determines whether your investor can defend against future dilution.
- Who specifically will be our lead partner, and how many other active board seats do they hold? Partners with 8+ board seats often delegate to associates.
- What was your last 3 exits’ path (IPO, strategic, secondary, continuation) and what was the founder’s take-home vs the model at Series entry? The delta reveals how well the firm structures for founder outcomes.
- Would you accept a 3x liquidation cap on your preferred, and can we structure a founder-liquidity redemption at Year 5 at fair market value? Willingness to negotiate on these terms signals partnership vs one-sided posture.
Common mistakes founders make with growth equity firms
Three patterns recur when founders take growth equity capital that turns out badly. First, taking too much money at too high a valuation, which forces the company to grow into an unrealistic multiple and often triggers down rounds or ratchet clauses in the next raise. Second, accepting a preferred structure with a participating liquidation preference or an accruing PIK dividend without modeling founder proceeds at three exit scenarios (base, upside, downside). Third, giving up too much board control by accepting two investor seats plus an independent that the investor selects.
The best defense is preparation before the process starts. Model your exit outcomes at $200M, $400M, and $600M enterprise values, with and without various preferred structures. Understand which firms lead with founder-friendly terms (Summit and JMI have reputations here) and which push harder on preferred structure (Insight and Vista in some deals).
Growth equity vs recapitalization: what is the actual difference
Growth equity primary rounds fund the company balance sheet; recapitalizations buy out existing shareholders. In practice, most modern growth equity deals blend both. A $100M investment might allocate $60M as primary capital for sales expansion and $40M as secondary capital taking out a founder or early angel investor. That mix, and how it is negotiated, is often the difference between a deal that closes and one that stalls.
For a full walkthrough of dividend recapitalization structures used by both growth and buyout firms, and the distinction from a straight equity raise, review the CT Acquisitions guide to leveraged buyout modeling which covers the capital-stack and preferred-equity math relevant to growth equity structures as well.
Where CT Acquisitions fits for lower-middle-market sellers
The firms on this list generally target companies with $10M+ ARR and enterprise values of $100M+. Founders below that threshold, particularly those with $5M-$50M enterprise value businesses in trades, industrial, healthcare services, or specialty distribution verticals, often need a different partner. Most bulge-bracket and named growth firms will not engage with sub-$50M EV deals.
CT Acquisitions is a lower-middle-market sell-side and buy-side M&A advisor focused on that segment. We work exclusively with owner-operators considering exit or recapitalization, run curated buyer processes against our sector-specific PE and strategic buyer networks, and structure our engagements around aligned incentives (transparent retainers, no hidden fees, tied to close). For founders weighing a growth equity minority deal against a full sale, we help model both outcomes side by side.
Schedule a 30-minute exit-readiness call at ctacquisitions.com/contact-us.
Frequently Asked Questions
What are the top growth equity firms in 2026?
The top growth equity firms in 2026 by AUM are Insight Partners ($90B), General Atlantic ($87B), Warburg Pincus ($55B growth strategy), TA Associates ($50B), and Summit Partners ($42B). These five firms account for more than half of dedicated growth equity capital under management globally as of Q1 2026 per PitchBook and SEC Form ADV data.
What is the difference between growth equity and private equity?
Growth equity takes minority or majority stakes in profitable, scaling companies using little or no leverage, with typical check sizes of $20M to $500M for 10-50 percent ownership. Traditional buyout private equity takes control stakes (usually 80 percent+) in mature businesses using significant leverage (4-7x EBITDA) and drives returns through operational changes and financial engineering.
How much do growth equity firms invest per deal?
Check sizes range from $10M for smaller specialists like Volition Capital and Frontier Growth to $500M+ for larger firms like Insight Partners and General Atlantic. The middle of the market sits at $50M-$150M, with target companies typically valued between $150M and $1B pre-money. Most growth equity deals include a mix of primary capital (into the company) and secondary capital (buying out founders or early investors).
Who is the largest growth equity firm?
Insight Partners is the largest dedicated growth equity firm globally with approximately $90B under management as of Q1 2026, following the April 2025 close of Insight Partners Fund XIII at $12.5B. Insight has invested in more than 800 companies since founding in 1995 and focuses on software, cybersecurity, and data-services businesses.
What return do growth equity firms target?
Growth equity firms typically underwrite to a 20-25 percent net IRR and a 2.5-3.5x multiple on invested capital over a four-to-seven-year hold. The Cambridge Associates US Growth Equity Index has returned 15.2 percent net pooled IRR since inception through Q3 2025, with top-quartile funds delivering 25 percent+ net IRR historically.
Do growth equity firms take control of companies?
Most growth equity deals are minority investments where the founder retains operational control and majority ownership. Some firms (Vista Equity, Providence, TA in certain deals) will take majority or full control positions when the situation calls for it, typically in later-stage recapitalizations. Minority deals include board rights and protective provisions but not day-to-day operational control.
How do growth equity firms exit their investments?
Exit routes include IPO, strategic sale to a corporate acquirer, secondary sale to a buyout private equity fund, secondary sale to another growth equity firm, and GP-led continuation fund transactions. In 2024-2025 strategic sales and secondary sales to buyout PE accounted for roughly 78 percent of exits by count per PitchBook data, with IPOs representing less than 12 percent.
What is the difference between growth equity and late-stage venture capital?
Growth equity typically targets profitable or near-profitable companies with $10M+ in revenue and proven unit economics, while late-stage venture capital funds companies that may still be burning cash chasing rapid growth. Growth equity underwrites 20-25 percent IRR with modest downside, while late-stage venture chases 25-40 percent IRR with higher failure rates. Sequoia Capital, Andreessen Horowitz, and Tiger Global do late-stage venture; Insight Partners, TA Associates, and Summit Partners do growth equity, though the categories overlap for firms like IVP and Bain Capital Ventures.