Introduction
Private equity is a type of investment where professional investors collect a large fund (usually from wealthy investors) and reinvest that money in various ways aimed at achieving the highest possible return. Companies in this industry often attract half-risk headlines for large acquisitions and sometimes controversial mixed acquisitions and sometimes bankruptcy and the loss of billions of dollars. However, among many potential financial giants, a few firms have risen to the top as the largest and most successful private equity companies.
Blackstone Group
Even those with little interest in Wall Street have likely heard of Blackstone. The firm is headquartered in New York and has offices in major financial centers around the world. This company offers a wide range of investment products and services, including private equity, real estate, alternative investment funds, and credit.
Founded by two brothers in 1985, Blackstone has expanded to become the largest private equity firm in the world. Since Blackstone is a public company, you can buy shares on the New York Stock Exchange under the ticker BX.
Blackstone claims to manage $648 billion and employs over 2,400 people. It has raised $58.3 billion over the past five years. Its 95 subsidiary companies generate more than $79 billion in annual revenue and employ 470,000 people. Subsidiaries include Vivint, Scout 24, Service King Collision Repair Centers, and Versace.
Carlyle Group
With $429 billion in assets under management and $40.1 billion in funds raised over the past five years, Carlyle Group is a major player in the financial industry. Founded in 1987, it is traded on the NASDAQ under the ticker CG and is headquartered in Washington, D.C.
The primary business lines at Carlyle Group include private equity, real estate, global credit, and investment solutions. Carlyle focuses on 10 key industries it considers its areas of expertise. It employs 1,600 people in offices around the world.
Carlyle’s more than 200 subsidiaries span industries such as aerospace, healthcare, technology, and energy. Those companies employ nearly 650,000 workers on every continent except Antarctica. While not all are household names, key investments include Centennial Resource Production, DiscoverOrg Holding, Ortho-Clinical Diagnostics, Nature’s Bounty, Veritas Holdings, and Wesco Aircraft Holdings.
Kohlberg Kravis Roberts
Kohlberg Kravis Roberts, known as KKR, has raised $41.6 billion in the past five years and manages $429 billion in total assets. KKR’s roots date back to 1976 and it was a major force in the notorious RJR Nabisco acquisition, which was chronicled in the bestseller Barbarians at the Gate.
The public can buy shares in Kohlberg Kravis Roberts on the New York Stock Exchange under the ticker KKR. Like other large private equity firms, KKR is involved in several business areas including real estate, alternative investment funds, credit, and other financial services.
KKR employs 1,300 staff and is headquartered in New York City. Its subsidiaries include some big names like First Data, GoDaddy, Lyft, PEMEX Midstream, UFC, and others. A recent investment that brought KKR into the headlines was Toys ‘R Us, which filed for bankruptcy and closed more than 800 stores in 2018.
TPG Capital
TPG Capital, based in Fort Worth, Texas, has raised $36.1 billion in the past five years. It maintains a second headquarters in San Francisco. Previously known as Texas Pacific Group, it manages a portfolio valued at over $96 billion through its private equity, real estate, credit, and alternative investment fund divisions.
Founded
the company was founded in 1992 and completed over 175 transactions. Key assets include the cybersecurity firm McAfee. Major investments include Neiman Marcus, Harrah’s Entertainment, First Data, and Univision Communications.
With TPG’s headquarters in the heart of oil country and Silicon Valley, it’s no surprise to see energy and technology as two of the company’s most important industries. Other industries include retail, healthcare, real estate, and manufacturing.
Apollo Global Management
Apollo Global Management, based in New York, entered the private equity arena in 1990 with $276 billion in assets under management and $24 billion raised over the past five years. Apollo is listed on the New York Stock Exchange under the ticker APO.
This global firm employs 1,100 people and is known for its contrarian acquisitions and buying distressed companies. Since its founding, it has completed over 150 affiliated companies. Those companies include ADT, Claire’s, Caesars Entertainment, CareerBuilder, Qdoba, and Rackspace.
Half of Apollo’s investments come from public pensions and sovereign wealth funds. This indicates that many major and sophisticated investors place a lot of trust in Apollo.
Bain Capital
Bain Capital manages $140 billion in assets and has raised $18.2 billion in new funds over the past five years. Founded in 1983 and based in Boston, it employs over 1,000 people in its global offices. Bain Capital is partially known thanks to its co-founder Mitt Romney, the Republican presidential candidate in 2012 and now a U.S. Senator from Utah.
This firm operates in credit, public equity, venture capital, and real estate. Some of the big brands that have passed through Bain’s portfolio over the last decade include Media Channels, Canada Goose, Virgin Cruises, and Bugaboo International. Previous major assets also include Staples, Sports Authority, Guitar Center, Gymboree, Houghton Mifflin, Domino’s Pizza, Burger King, Air Channel, and Brookstone.
The fund’s areas of expertise include the socially-conscious Bain Capital Double Impact, Bain Capital Life Sciences, and Bain Capital Real Estate. Looking back at Bain’s portfolio, you can also see a preference for retail, restaurants, and other consumer brands.
Warburg Pincus
Founded in New York City in 1966, Warburg Pincus manages a $64 billion private equity portfolio and has completed over 835 investments in its long history.
In the past five years, Warburg Pincus raised $30.8 billion in new capital. This firm organizes itself into the energy, financial, healthcare, consumer, industrial services, business, communications technology, and media sectors. Notable investments include 1&1 Hosting, Avaya, PayScale, Mariner Finance, and a wide range of foreign companies.
CVC Capital Partners
CVC Capital Partners was established in 1981 and has 500 employees across 24 global offices. CVC’s headquarters in Luxembourg places it within a unique set of European regulations. It was the largest non-American private equity firm in terms of funds raised over the past five years, totaling $19.9 billion.
CVC Capital manages $114.8 billion in assets. It primarily focuses on private equity and credit. Although it focuses on small businesses, CVC is not a small company. It began as a European branch of Citicorp Venture Capital before becoming an independent firm in 1993.
It contains
The company has 61 current subsidiaries. Key investments include Formula One Group, Petco, Avast, BJ’s Wholesale Club, Breitling, Republic Finance, Pilot Flying J, Samsonite, Skrill, and others.
Source: https://www.thebalancemoney.com/best-private-equity-firms-4583955
Leave a Reply