Venture capital investments often have high and increasing working capital (current assets less current liabilities) requirements to finance growth. Buyouts typically have low requirements due to more reliable cash flows and earnings and a substantial asset base.
Stable EBITDA (or EBIT) growth is generally a characteristic of buyout investments. These firms traditionally have a history of stable sales and cash flows and have already established a strong market position. The high amount of debt required by the private equity firm to make the investment also requires that the buyout firm have stable and steady earnings to finance the interest payments. | 
