Growth equity is a private capital investment strategy that provides funding for established companies to expand operations. Unlike venture capital that targets startups, growth equity focuses on more mature, profitable businesses looking to scale up. Growth equity investors inject capital to help companies accelerate growth, increase production capacity, develop new products, or fund acquisitions. The capital may be used as an alternative to taking on additional debt. A company may partner with a growth equity firm to receive funding as well as strategic and operational guidance without giving up control. Growth equity typically takes a minority stake in companies and aims to generate returns through the increased value of that stake as the company grows. Ideal targets for growth equity are high-potential businesses with proven products in need of capital to fulfill their next stage of expansion.