Growth equity firms today face extraordinary market characteristics. Hold periods have extended, many investments are ‘upside down,’ and fund IRRs, on average, have turned negative. Additionally, capital costs have increased, and raising capital has grown increasingly difficult.
We see four critical strategies growth equity firms can implement to meet this moment and effectively navigate change:
This evolving market requires growth equity firms to reevaluate their approach. While rapid growth once reigned supreme, today’s operating environment needs a renewed focus on discipline and efficiency. Strategic shifts, including prioritizing performance tracking, enhancing operational efficiency, and adopting new talent strategies, will be crucial to success as growth investors navigate this changing landscape.
Andrew Solar uses his broad business background and data analytics acumen to effectively solve client challenges. Prior to joining SSA & Company, Andrew worked at Gillum Strategy Partners, a boutique strategy consulting firm based in Chicago, where he led a broad range of strategy and operations projects primarily for industrial and private equity-owned businesses.
Courtney Hamilton has worked on numerous CEO successions, partnering closely with boards and key stakeholders to ensure seamless transitions. Her experience crosses a number of industries, including financial services, technology, transportation, media, industrial products, consumer products, manufacturing, and healthcare. Courtney has been with TMG coaching top executives for years; she has deep experience assessing and developing senior executives across multiple Fortune 500 companies.
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