A growth fund is a diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. Most growth funds offer higher potential capital appreciation but usually at above-average risk. This high-risk, high-reward mantra makes growth funds ideal for those not retiring anytime soon.
Investors need a tolerance for risk and a holding period with a time horizon of five to 10 years.
Growth fund holdings often have high price-to-earnings and price-to-sales multiples. This trade-off from investors is the above-average revenue and earnings gains these companies produce. Growth funds, along with value funds and blend funds, are one of the main types of mutual funds. They are more volatile than funds in the value and blend categories. Growth funds are typically split by market capitalizationwith funds representing small-cap, mid-cap, and large-cap groupings.
Large-cap growth funds are the biggest class of growth funds with a 9. This trails only large-blend funds, which offer investors value and growth.
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Large-blend funds have a Foreign large-cap growth funds rank 11th of all mutual fund classes with a 2. Foreign growth funds are becoming more common for investors who want to take advantage of global growth.
These funds invest in international stocks posting strong revenue and earnings growth. For international growth funds, technology and consumer sectors are the most common. Large internet names such as Tencent, Baidu, and Alibaba can be found among the top 10 holdings for many international growth funds. It continues to perform well with an average gain of The Growth Fund of America has Facebook as its largest holding, representing 5.
Technology stocks represent the largest sector weighting at Communication Services stocks follow closely behind with Technology stocks are a major part of growth funds. With high growth and high price-to-earnings and price-to-sales valuations, technology stocks fit the criteria perfectly for growth funds. Large growth U. By contrast, large value U. Mutual Funds. Top ETFs. Top Mutual Funds. Your Money. Personal Finance.
Your Practice. Popular Courses. Trading Fund Trading. What Is a Growth Fund? Key Takeaways A growth fund is a mutual fund or exchange-traded fund ETF that includes companies primed for revenue or earnings growth at a pace that is faster than that of either industry peers or the market overall.
Most growth funds are high-risk, high-reward and are therefore best suited to market participants with a long-term investment horizon and a healthy risk tolerance. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.Returns data were collected through direct confirmation from funds as well as third-party independent research and focused on funds raised within the last 10 years.
Institutional Venture Partners IVP is a US-based private equity investment firm focusing on later-stage venture capital and growth equity investments.
IVP has a strong portfolio of both enterprise and consumer technology companies. Dennis in NewSpring Capital is a family of growth-oriented funds headquartered in Radnor, Pennsylvania. Catalyst Investors started their first fund in with many of their partners having previously worked at Toronto Dominion TD. Catalyst was an early pioneer in the growth equity space in that their style of investing has, by and large, remained constant even though growth equity as an asset class was only recently defined.
Canaan was founded in and provides capital for growth across all industry sections including information technology, healthcare and medical. Led by OrbiMed Advisors, an investment management firm focused on the healthcare sector, Caduceus Private Investment funds invest primarily in US mid and late stage private life science companies and medical technologies.
The fund also invests opportunistically in public small cap companies. Lime Rock Partners provides growth capital for the energy industry. Ventures Inc. Insight Venture Partners is a private equity and venture capital firm investing in growth-stage companies.KKR Launches New Tech Growth Fund
Emergence Capital was founded in by Jason Green, Brian Jacobs and Gordon Ritter to invest behind their shared thesis that enterprise software would move to the cloud. Since then, Emergence has invested in over 40 companies and become known as a leading investor in early and growth-stage enterprise cloud companies. The firm is now investing out of its second fund which closed in and targeting branded food, beverage, personal care, beauty, apparel, specialty retail and fast casual restaurants across the U.
Riverwood Capital is a globally-focused private equity firm that invests in high-growth businesses in the technology and services industries. Founded inJMI is a growth equity firm focused on investing in leading software and technology-enabled services companies. They have invested in over companies, with more than 65 of their portfolio companies having achieved successful outcomes such as sales to strategic acquirers or initial public offerings.
General Catalyst Partners is an investment firm that makes early-stage and growth equity investments. Their mandate ranges from growth investments for control of companies to taking minority stakes in businesses with significant prospects for growth.We back bold entrepreneurs who are committed to realizing their vision and building market-leading businesses. With flexible and patient capital, we can scale our investments based on company need, size, and stage.
Ability to leverage domestic and global network of relationships and resources for our partners. Supportive in all respects strategic planning, management support, etc.
Access to diverse and multidimensional skill sets, experiences, and relationships across the PSP organization.
Appreciation for the vision, dedication, and perseverance required to build and scale market-leading businesses. Our team has over a century of combined experience building and growing businesses across a variety of stages and sectors. Emphasis on aligned interests and shared values with world-class entrepreneurs.
We are pragmatic and realistic in the face of both successes and challenges. We focus on executing a strategic vision and driving value creation, and understand that great businesses are not built overnight. We invest from our balance sheet, not a fund no external constraints or mandated hold periods. Back Overview Team. PSP Capital Team.Any highly regarded names or are these places all cold calling centers?
Being part of a growth equity firm is similar to working at other private equity firms but there is an emphasis on sourcing. The duties usually involve. Sourcing gets most of the attention in growth equity. However the process is simple.
First, an email is sent. Second, after a few emails the initial call is made it's a cold call if they don't respond. Third, warm calls help establish a working relationship. The last part of the process is of course getting the business. All of the above shops will look great on a resume and have good exit opportunities. You can get some decent exposure to the senior guys and the opportunity to source and actually execute some deals if you're good and depending on the shops modelbut also be prepared to smile and dial Want to land at an elite private equity firm?
Our course includes 2, questions across private equity funds that have been crowdsourced from overmembers. Private Equity Interview Course. NEA associates also don't source.
PSP Investments accelerates international growth with launch of European hub in London
I think thats the case with GA too but could be wrong. You will definitely be sourcing at TA and Summit though. Does general atlantic really belong on this list?
Its one of the biggest PE firms in the world. I doubt their associates are cold calling companies.As business builders, we know that exceptional organizations are built through constant focus on all stakeholders and maximizing long-term value. As a strategic partner, we provide flexible capital, a deep network of resources, and a commitment to building world-class businesses.
We have a strong belief that companies should not be constrained by mandated investment exits, capital limitations, and short-term focus often employed by private equity firms.
Our Approach: We are patient, flexible and solutions-oriented partners, with a profound appreciation for preserving strong cultures and aligning interests with valued partners to build shareholder value.
we are business builders investing in teams, trends and opportunities
Our Partners: Like-minded, dynamic management teams, entrepreneurs and business owners. Our Process: Straightforward and efficient, with no outside approvals required. PSP Capital is focused on buyouts and investments in established businesses. We invest flexible, patient capital with a focus on three sectors:. PSP Growth is focused primarily on late-stage venture and growth equity investments in high-growth businesses, and has flexibility to scale investments based on size and stage of the company.
We are committed partners, with our principals having over a century of combined experience investing in, owning and building global businesses. We have a profound appreciation for discretion, preserving strong cultures and aligning interests with our valued partners. Back Overview Team.
Core Values: Integrity, discretion and candor.We seek private equity returns by providing capital and expertise with a focus on investing for the long-term and through economic cycles.
Our aim is to be the investment partner of choice for private equity funds, other long-term investment institutions, founders and management teams. With a focus on agility and transparency, we can execute large, complex global transactions across the capital structure in varying investment sizes.
We look for investment partners with a strong track record, a demonstrated value creation strategy, strong value orientation and best-in-class governance standards. We invest in companies that demonstrate a strong market position, an attractive cash flow profile, resilience through economic cycles and a top-tier management team.
AlixPartners is a global business advisory firm serving Fortune and mid-market companies, governments, law firms and private equity firms around the world.
AlixPartners offers a broad suite of advisory services, helping businesses respond to challenges - from urgent performance improvement to complex restructuring, from risk mitigation to accelerated transformation.
Founded inGalderma is a leading global dermatology company offering a comprehensive portfolio of medical and consumer skin health products, and operating under three business units: aesthetics, prescription and consumer.
This investment is at the core of our investment strategy of backing a market leader with exceptionally strong brands and a clear strategic vision. We acquired a minority stake alongside a trusted partner. Want to discover how you can experience the edge? Join our team. Private Equity. Insight and partnership We seek private equity returns by providing capital and expertise with a focus on investing for the long-term and through economic cycles.
What sets us apart? Global scale Long-term investment horizon Agile decision-making and transparency. Private Equity at a glance. Net assets under management AUM. Performance income. View our performance. Discover where we invest. Geographic diversification. Sector diversification.This new London-based office solidifies PSP Investments as a truly global pension investment manager, uniquely positioned to seize new investment opportunities. The team has deep industry knowledge and a diversified skill set.
It will combine long-term capital, with financially oriented insight from our partners and management teams, to form strategic industry specialized investment platforms across Europe. Establishing a European hub is a strategic milestone for us and demonstrates our confidence and commitment to the region.
The European hub will further enable PSP Investments to capitalize on opportunities while further developing strategic partnerships locally. The European hub currently has a team of 28 professionals. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. For more information, visit www.
Oliver DuffManaging Director of Principal Debt and Credit Investments, has over 20 years of experience in leverage finance, with a strong track record of building relationships with syndicate desks, private equity firms and credit funds in European markets. Patrick CharbonneauManaging Director of Infrastructure Investments, has over 15 years of experience in the infrastructure sector. Prior to joining PSP Investments inhe worked in infrastructure advisory services for a global accounting firm.
Having joined PSP Investments inhe has over 20 years of global real estate investment management experience. Back to news hub. Related news. Media Contacts.