Beckon Capital is a growth equity focused investment manager.
Growth equity investment takes a minority shareholding in established businesses of around 20-40% in exchange for capital and resources. It’s sometimes called expansion capital or growth capital.
Typically, investments are for a longer term of around 8-10 years.
Growth Equity is also known as Patient Capital.
Growth equity occupies a middle-ground between traditional early-stage venture capital and private equity. It invests in established enterprises needing capital for:
Venture capital provides funding for markets and business models that aren’t yet proven, while private equity funding is typically deployed to acquire entire companies that are more mature.
Designed to create value for both investors and investments, Growth Equity combines capital with capability, providing strategic insights and access to expertise the investment may need to grow.
The founders are always in control because Growth Equity takes a minority partnership, providing capital and capability to make the business stronger. Small businesses get access to resources usually associated with larger companies such as data, subject experts and innovative tools.
Risk is reduced. Growth equity works alongside the founder, providing insights and guidance to help lift productivity and monitor the progress of achieving agreed strategic milestones.
Growth Equity can free up SMEs and local built environment projects from the restrictions, pressure and cashflow implications of debt financing; the most common source of funding in these segments. With the right partner, Growth Equity encourages unconstrained thinking to ignite the real potential of a business - and deliver sustainable financial returns.
Growth Equity is known, used and proven globally but little used in Australia. Beckon is one of Australia’s earliest fund managers to offer Growth Equity.
The British Growth Fund kicked off in 2011, and the Canadian Growth Fund in 2017. They invest in small to medium-sized enterprises and now boast impressive balance sheets.
The Australian Federal Government established a Business Growth Fund in October 2020.