Unicorn

- A privately held startup company valued at over $1 billion, typically backed by venture capital and considered to have high growth potential.

Scenario:

A growth equity fund targets investments in unicorns—private companies valued at over $1 billion—seeking rapid value appreciation.

Why This Matters:

Potential for significant gains, attracts LPs and media, may provide liquidity via secondary sales or IPOs.

The Process:

The fund screens for unicorns with strong fundamentals and exit potential, negotiating terms for minority stakes.