Strategy in Focus: Growth equity

This Strategy in Focus report offers an LP-oriented analysis of the growth equity strategy. Using Preqin performance, fundraising, deals, exits, and investor survey data, we assess sector exposure for growth funds, capital concentration trends, and the drivers of renewed investor interest in the strategy

• Growth equity outperformed buyouts over the three years to March 2026 and offered stronger risk-adjusted returns than VC over five- and 10-year horizons

• The IT sector has historically accounted for a defining share of growth fund deal-making relative to the wider private equity industry, and our latest data suggests this sector dominance may be beginning to evolve, particularly driven by AI trends

• Fundraising is increasingly concentrated in North America-focused funds, with average growth equity fund sizes also steadily growing