Private equity organizations oversee investment funding from high-net-worth individuals (HNWIs) or institutional investors in order to acquire equity ownership of businesses using a range of tactics, such as venture capital and leveraged buyouts. The normal investment horizon for private equity companies is five to seven years.
The private equity firm intends to eventually make money by either selling the company directly or through an initial public offering after acquiring an equity stake in it (IPO). These companies frequently collaborate with other private equity companies to generate the necessary funds and lower their risk when particularly sizable investments are required. Most businesses focus on one or more sectors or types of investments in which they are particularly skilled.
Based on total private equity funding for the five years that concluded on June 1, 2021, a report by Private Equity International (PEI) selected the top 300 companies.
According to the research, these are the top 10 private equity companies.
It should be noted by readers that private equity assets under management (AUM) could only represent a portion of a company’s overall AUM. Where possible, we have included private equity AUM in the table below.
1. The Blackstone Group Inc.
The Blackstone Group Inc. (BX), which was established in 1985 and has offices in London, Hong Kong, Beijing, and Dubai, is the market leader with $881 billion in total assets under management (AUM).
The business makes investments in a variety of industry segments, including the energy, retail, and technology industries. Although Blackstone’s main investment area is private equity ($126 billion), it also has enormous stakes in real estate, credit, and hedge funds. Refinitiv, a producer of financial markets data and infrastructure, Ancestry, a provider of digital family history services, and Bumble, the owner and operator of dating and social networking applications, are just a few of its 107 portfolio companies.
2. KKR & Co. Inc.
The $459 billion AUM of KKR & Co. Inc. (KKR), originally Kohlberg Kravis Roberts & Co. KKR, a New York-based company founded in 1976, is renowned for being one of the first companies to participate in large-scale leveraged buyouts, which are currently one of the firm’s areas of expertise.
The company’s 1989 leveraged acquisition of RJR Nabisco and its 2007 acquisition of TXU, the largest leveraged acquisition in history, are two notable transactions.
Its current interests include Optiv, PetVet, and Fiserv Inc.
3. CVC Capital Partners
The entire AUM of CVC Capital Partners is close to $122 billion, and its private equity platforms oversee $92 billion in assets. CVC, which was founded in 1981, has 24 locations throughout the world and more than 650 employees, including 300 investment experts. 114 businesses from all around the world are included in its private equity portfolio.
4. The Carlyle Group Inc.
With 26 offices spread across five continents and a $293 billion AUM, The Carlyle Group Inc. (CG) employs more than 1,800 experts worldwide. Washington, D.C. serves as the company’s headquarters. It was established in 1987. Supreme, Workforce Logiq, and the Japanese brewery Orion Breweries Ltd. are among the noteworthy current holdings of its corporate private equity subsidiary, which has an AUM of $161 billion.
5. Thoma Bravo
With a $91 billion AUM and more than 40 years of expertise, Thoma Bravo offers seasoned management teams and expanding software and technology firms funding and strategic assistance. Its portfolio includes some of the most well-known businesses, such as McAfee, Conga, and Anchorage.
6. EQT
EQT A.B. (EQT.ST), a Swedish company, has an AUM of 73.3 billion euros, or around $81.7 billion as of this writing, according to the current currency rate. The business was established in 1994 and now employs over 1,200 people in 24 nations in Europe, North America, and the Asia-Pacific area. Perhaps its most well-known portfolio firm among Americans is Flying Tiger Copenhagen.
7. Vista Equity Partners
Vista Equity Partners, which has more than $86 billion in AUM, only invests in businesses that use software, data, and other forms of technology. In addition to other industries, the corporation has strategic interests in businesses in the healthcare, advertising, and risk management sectors. The largest fund ever created by an independent private equity company, the $16 billion technology fund Vista completed in September 2019, was the largest fund ever.
8. TPG Capital
AUM for TPG Capital as a whole is $109 billion. David Bonderman and Jim Coulter founded TPG Capital in 1992, and it has its corporate office in San Francisco. The business operates 12 other offices in 8 different nations.
Among the company’s notable deals include its 1993 acquisition of Continental Airlines, 2000 partnership with Leonard Green and Partners to purchase Petco, and 2002 leveraged acquisition of Burger King with Bain Capital and Goldman Sachs Capital Partners.
Chobani, Fender, and Airbnb are a some of the companies now in its portfolio.
9. Warburg Pincus LLC
With investments in more than 235 businesses, Warburg Pincus LLC has a total AUM of over $73 billion. E.M. Warburg & Co., which was created in 1939, and Warburg Pincus, which was founded in 1966, are the foundations of the company. It has offices in 13 nations, with its headquarters in New York.
10. Neuberger Berman Group LLC
The $460 billion AUM of Neuberger Berman Group LLC includes $70 billion in private equity. Neuberger Berman claims to have more than 25 years of experience in alternative investing and employs more than 648 specialists across 25 nations.
Which private equity firms pay the most?
A job in private equity may be quite profitable. According to a Heidrick & Struggles poll, managing partners at private equity companies with less than $20 billion in assets under management received average cash remuneration in 2019 ranging from $1.1 million to $3.7 million, including incentives (AUM).
Depending on the firm’s AUM, our analysis revealed that the overall average remuneration for partners and managing directors in 2019 ranged from $596,000 to $2.2 million. Between $193,000 and $315,000, the average salary for associates and senior associates varied less among company sizes.
Apollo Global Management, KKR & Co., and Brookfield Asset Management were the companies that paid the greatest amounts for an associate job in 2019, according to the H1B Database, which combines the basic wages of all U.S. workers under the common H-1B visa. The lowest-ranking worker at a private equity company is often an associate. They usually have experience in investment banking, consulting, or other deal-related financial services, and they are in their mid- to late-20s.
Peak Frameworks is a platform for preparing for a career in finance that was established by experts in private equity and investment banking. According to Peak Frameworks, Apollo Global Management is commonly cited as the highest-paying private equity company in terms of total remuneration, with associate salaries that may reach $400,000 annually.
Is Bain Capital prestigious?
The Boston-based company Bain Capital was established in 1983. At its international offices, the corporation has around 1,000 workers working there. Because of its co-founder, Mitt Romney, who was the 2012 Republican presidential contender, Bain is well-known in major part. Since January 2019, he has represented Utah as the junior senator of the United States.
Since its founding, Clear Channel Communications, Canada Goose, Virgin Holidays Cruises, and Bugaboo International have all been part of Bain’s portfolio. Staples, Sports Authority, Guitar Center, Gymboree, Houghton Mifflin, Domino’s Pizza, Burger King, The Weather Channel, and Brookstone are a few further notable former holdings.
In general, the fund favors consumer brands from the retail, dining, and hospitality industries.
How much does a vice president in private equity make?
Your overall remuneration in the private equity industry often depends on the AUM of the company you work for. Vice president salaries are often higher in companies with higher AUMs.
Heidrick & Struggles’ 2020 North American Private Equity Investment Professional Compensation Survey found that vice presidents at companies with an AUM under $500 million received an average total cash salary of $329,000 in 2019. The average total cash remuneration for businesses with an AUM of $10 billion to $19.99 billion was $592,000.
Which private equity firms are publicly traded?
The Blackstone Group (BX), The Carlyle Group (CG), Apollo Global Management (APO), and KKR & Co. are the top four publicly listed private equity companies (KKR).
As an alternative, private businesses include Advent International, Bain Capital, TPG Capital, and Warburg Pincus.
The Bottom Line
Private equity businesses use experienced investors who raise sizable money (often from wealthy investors) and reinvest those monies in order to maximize earnings. Since companies frequently conduct contentious leveraged buyouts and sizable acquisitions, the essence of the private equity sector is hazardous. Private equity businesses losing billions of dollars or going out of business completely is also not entirely unheard of. The companies in this essay, however, have all become the biggest and most prosperous private equity businesses.