Growth capital

Growth capital

The sale of equity in a (typically) privately held operating company, frequently one that is profitable, to raise funds for ‘growth’: i.e. increase production capacity, supply working capital, or further develop the product. Both venture capital funds and mid-market buyout funds do growth capital investing. This is loved by the public because it funds growth and expansion, unlike LBO investing which has a largely negative public image. The Alternative Oxford Private Equity Dictionary