Private equity is a type of investment, away from public markets, in which funds and investors directly invest in companies or engage in buyouts of such companies. The private equity can take on various forms, from complex leveraged buyouts to venture capital. These investments are usually done by high net worth individuals or affluent investors. Now, due to being in such a risky industry, these firms are often seen creating headlines for either acquiring huge acquisitions or going bankrupt. But among these, there are a few firms which have proved to be the real Titans of finance. And that’s exactly what we have brought to you today in this video!
On the basis of fundraising over the last five years, and total assets under management, we have come up with the list of top 10 biggest private equity firms in the world.
This list is compiled as per the report by Private Equity International (PEI). watch the video till to know the number one largest private equity firm in the world.
10Vista Equity Partners
With over $57 billion in total assets under management, Vista Equity Partners stands firm at the 10th position in our top 10 list. It was founded by Robert Smith and Brian Sheth back in the year 2000. It invests primarily in technology startups, and sometimes also makes passive equity investments in early venture companies. The company also has strategic investments across companies in healthcare, event ticketing, advertising and risk management, among other industries. The company is headquartered in Austin and has raised $32.09 billion from investors in the last five years. In September of 2019, Vista closed a $16 billion technology fund, the largest fund ever raised by an independent PE firm. In fact, last year, it invested $1.5 billion in India’s Jio Platforms.
9Advent International
At number nine on the top 10 list is the Boston-based Advent International. It was founded by Peter Brooke in the year 1984. The company engages in buyouts, growth investing, and strategic restructuring. Advent has completed about 350 transactions across North America, Europe, Asia, and Latin America since the year of its inception. According to PEI 300, it has raised $33.49 billion in the last five years and has $56.80 billion in assets under management.
8EQT Partners
Making it to the 8th position is one of the only two non-US private equity firms on this list – EQT Partners. The Swedish PE firm was founded in 1994 by the powerful Wallenberg family, AEA Investors, and SEB. The company has invested in more than 200 companies across North America, China, and Nordic countries. EQT Partners has raised $34.42 billion in the last five years. The firm has more than 700 employees in 15 countries across Europe, North America, and the Asia-Pacific region.16 Flying Tiger Copenhagen is its best-known portfolio company among U.S. consumers.
7CVC Capital Partners
CVC Capital Partners was founded in 1981 and is the most prominent non-US private equity firm in the world. It is headquartered in Luxembourg and has 500 employees in 24 global offices. CVC started as the European subsidiary of Citicorp Venture Capital (CVC). It spun out of Citicorp in 1993 to become an independent PE firm. It manages $69 billion in assets and has raised at $35.97 billion funds over the past five years. It primarily focuses on private equity and credit. The firm has 61 current portfolio companies. Major investments have included Formula One Group, Petco, Avast, BJ’s Wholesale Club, Breitling, Republic Finance, Pilot Flying J, Samsonite, Skrill, and others.
6Neuberger Berman
Neuberger Berman was founded in 1939 right before World War II. The CEO of the company is George Herbert Walker IV, a second cousin of former US President George W. Bush. Lehman Brothers acquired Neuberger Berman in 2003, but the PE firm survived its parent company’s collapse in 2008. The firm has been noted for its successful comeback from the bankruptcy of Lehman and the financial crisis. It is headquartered in New York and has raised $36.43 billion in the last five years, according to the PEI 300 report. It raises capital mainly from sovereign wealth funds, pension funds, charity organisations, and high net-worth individuals. Citing more than 30 years of experience in alternative investments, Neuberger Berman employs more than 160 professionals in the field in seven locations worldwide.
5Warburg Pincus
Founded in 1966, Warburg Pincus is headquartered in New York. It focuses on growth investing and has invested in approximately 900 companies around the world. With 1,000 employees, the company manages a $47 billion private equity portfolio. It has raised $37.57 billion capital from investors between January 2015 and April 2020. Warburg Pincus invests across technology, media, healthcare, financial services, retail, and industrial manufacturing sectors. Some noteworthy investments include 1&1 Hosting, Avaya, PayScale, Mariner Finance, and a wide range of foreign firms. The investment firm’s strategies include using its knowledge of local markets to play a role in the impact and development of a business. The investment firm analyzes the company, competition, debt structure, history, and broad macro trends; this is true whether the investment is an initial public offering, growth capital, a leveraged buyout, or a complex recapitalization.
4TPG Capital
Fort Worth, Texas-based TPG Capital was founded in 1992. The firm holds its second HQ in San Francisco and was formerly known as Texas Pacific Group. It has completed over 175 transactions and has raised $38.68 billion in the last five years. The firm focuses on growth investing and leveraged buyouts. It manages a portfolio of over $70 billion in assets through private equity, real estate, credit, and hedge fund divisions. The company Major holdings include computer security company McAfee. Major investments include Neiman Marcus, Harrah’s Entertainment, First Data, and Univision Communications. With its dual headquarters in the hearts of oil country and Silicon Valley, it is no surprise to see energy and technology as two of the top focus industries for TPG. Other industries include retail, healthcare, real estate, industrials and you can read more here about everything. Last year, around June, TPG Capital invested $600 million in India’s Jio Platforms. An article in The New York Post’s business section stated that the investment had considerable gains on debt purchased in J. Crew.
3Kohlberg Kravis Roberts (KKR)
Kohlberg Kravis Roberts is the world’s third-biggest private equity firm. It is headquartered in New York City. Known as KKR, this firm raised $54. 7 billion in the last five years and manages $195 billion in total assets. Former Bear Sterns employees Jerome Kohlberg, Jr., Henry Kravis, and George R. Roberts, formed KKR in 1976. Interestingly, it was a major force in the infamous leveraged buyout of RJR Nabisco which was chronicled in the bestselling book Barbarians at the Gate. Like other large private equity firms, KKR is involved in several areas of business including real estate, hedge funds, credit, and other financial services. KKR has 1,300 employees and has offices in 16 countries. Portfolio companies include some big names like First Data, GoDaddy, Lyft, PEMEX Midstream, UFC, and others. The public can buy into Kohlberg Kravis Roberts on the New York Stock Exchange under symbol KKR.
2The Carlyle Group
Securing the number 2 position in our list of top 10 largest private equity firms in the world id The Carlyle Group. It has $201 billion in assets under management and has $61.73 billion in raised funds over the last five years. The Carlyle Group was founded in 1987 and is currently, needless to say, a major force in the financial industry. It trades on the NASDAQ under ticker symbol CG and is headquartered in Washington, D.C. They offer investments in private equity, real estate, global credit, and investment solutions. Carlyle focuses on ten core industries that it considers its areas of expertise. It employs 1,600 workers in its offices around the world. Carlyle’s more than 200 portfolio companies stretch across industries such as aerospace, healthcare, technology, and energy. Those companies employ a combined 650,000 workers on every continent but Antarctica. While they are not all household names, major investments include Centennial Resource Production, DiscoverOrg Holding, Ortho-Clinical Diagnostics, The Nature’s Bounty, Veritas Holdings, and Wesco Aircraft Holdings.
1The Blackstone Group
This company has ballooned to become the top largest private equity firm in the world with over $457 billion assets under management. It was founded by two brothers in the year 1985 and is. The company is headquartered in New York and holds offices in major financial centers around the world. This company offers a wide range of investment products and offers services including private equity, real estate, hedge funds, and credit. It is equipped with a staff of 2,400 employees and has raised $95.83 billion over the last five years. Its 95 portfolio companies earn more than $79 billion in annual revenue and employ 470,000. Portfolio companies include Vivint, Scout 24, Service King Collision Repair Centers, and Versace. As a public company, you can buy shares on the New York Stock Exchange under ticker BX.
Hope you enjoyed our list of 10 largest Private Equity Firms in the world. Tell us in the comment whether you found this video useful and do not forget to give this video a big thumbs up!
