Growth Financing

by Nicholas Jelfs

  • 11 Jan 2012
  • PE

Preqin’s Fund Manager Profiles products lists over 2,100 GPs that provide growth financing, described as taking unleveraged significant minority positions in established companies to promote development, as part of a broader investment strategy. 262 of these firms focus exclusively on making these types of investments, and collectively have raised an aggregate $29.7bn in capital commitments over the last 10 years. These growth-focused GPs have an estimated $11.6bn available in dry powder, and are currently in market with 55 growth vehicles seeking a further $11.8bn in capital.

With respect to the location breakdown of these 262 fund managers, 36% are based across North America with a further 28% located throughout Asia. 23% of the GPs are headquartered in Europe and the remaining 13% are based throughout the Rest of World. In terms of geographical focus of these firms, 41% will target opportunities across Asia, 39% in North America, and 26% throughout both Europe and the Rest of World respectively.

The three largest growth fund managers by total capital raised over the last 10 years are Gávea Investimentos, New Horizon Capital and Trustbridge Partners. The former is a Brazil-based GP focusing exclusively on opportunities throughout Brazil, and has raised a total of over $4bn for growth investments over the last 10 years. New Horizon Capital and Trustbridge Partners are both China-based fund managers and also only invest exclusively within their country of origin. New Horizon Capital has raised a little over $2.5bn over the period, while Trustbridge Partners has collected just under $1.6bn in capital

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