Private equity is a form of investment that involves the purchase of equity in companies that are not publicly traded. Private equity firms utilize investment capital obtained from institutional investors or high-net-worth individuals (HNWIs) to acquire equity ownership of companies by employing diverse tactics such as leveraged buyouts and venture capital.
Private equity firms operate with a long-term investment outlook that generally spans five to seven years. Their goal is to make a profit by either selling the company outright or through an initial public offering (IPO). Typically, private equity firms specialize in one or more industries or investment strategies where they have particular expertise. This is evident even among the top 10 private equity firms in the world based on their assets under management (AUM), as of Q1 2022.
No. | Private Equity Firm | Assets Under Management (AUM) | Industries and/or Notable Portfolio Companies |
1 | The Blackstone Group | $941 billion | Real Estate, Credit, Infrastructure, Hedge Funds, Insurance, Secondaries, and Growth Equity
|
2 | KKR & Co.
| $479 billion | Energy, Infrastructure, Real Estate, Credit, and, Through its Strategic Partners, Hedge Funds.
|
3 | CVC Capital Partners | $127 billion of total AUM, and its private equity platforms manage $87 billion of assets.
| Consumer / Retail, Technology, Financial Services, Healthcare, Technology, Building / Construction, Chemicals, Business Services, Manufacturing.
|
4 | The Carlyle Group Inc. | A total AUM of $376 billion, with its corporate private equity unit managing AUM of $167 billion
| Leveraged Buyouts, Growth Capital, Energy, Energy Lending, Structured Credit, Real Estate
|
5 | Thoma Bravo | $114 billion | Software And Technology Companies
|
6 | EQT | $81.7 billion | Infrastructure, Real Estate, Growth Equity, and Venture Capital
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7 | Vista Equity Partners | $86 billion | Software, Data, And Technology-Enabled Organizations in Healthcare, Advertising, and Risk Management
|
8 | TPG Capital | $109 billion
| Consumer/Retail, Media And Telecommunications, Industrials, Technology, Travel, Leisure, And Health Care
|
9 | Warburg Pincus LLC | $73 billion
| Retail, industrial manufacturing, energy, financial services, health care, technology, media, and real estate
|
10 | Neuberger Berman Group LLC | $460 billion in total AUM, including $70 billion in private equity
| Equities, fixed income, private equity and hedge fund |
Investing in private equity can be a complex and high-risk undertaking, but by working with an experienced and reputable private equity firm, investors can increase their chances of success. When considering a private equity investment, it’s important to do your due diligence and thoroughly research the private equity firm you’re considering. Look for firms with a track record of successful investments, a strong team with experience and expertise in your industry, and a clear investment strategy that aligns with your goals.
For entrepreneurs, private equity can provide a valuable source of capital to help grow their businesses. At PEGH, we are one of the most forward-looking private equity firms in Malaysia and we can help businesses reach their ambitious goals. We provide more than just funding; we bring expertise and resources that can help companies reach their full potential. If you’re ready to take your business to new heights, reach out to us at PEGH. We can help you reach your ambitious business goals with our expertise in various industries and investment strategies.
Source: https://www.investopedia.com/articles/markets/011116/worlds-top-10-private-equity-firms-apo-bx.asp
