Purpose: The purpose of this study is to understand the growth of a quasi-market industry and the distribution of capital generated by the industry´s private companies.

Methodology: Using a longitudinal case study approach, descriptive panel data and a regression analysis highlight the development of medium-sized Swedish companies within the personal care assistance (PA) industry.

Findings: This study demonstrates a quasi-market growth cycle and how the hierarchical organizational dimension explains key figure differences between the business types of independent firms (undivisionalized) and conglomerate subsidiaries.

Originality: This study is the first to reveal that quasi-market conditions open up for broad redistributions of capital to non-related conglomerate-owned industries. Thereby, non-intended industries receive public funding advantages.