Private equity firms manage capital by institutional investors or wealthy individuals (HNWIs) to purchase business stakes via various means, such as stock buybacks and venture funding. Long-term investment horizons are customary for private equity companies, ranging from five to seven years. Through either the sale of the business or an initial public offering (IPO), a private equity group aims to benefit from acquiring equity interests in the company (IPO). These businesses often join up with other private equity firms to obtain more funds and lower their overall risk. For the most part, businesses focus on a few specific markets or types of investments in which they are well-versed.
Top Private equity firms
Blackstone Group Inc.
Since its founding in 1985, The Blackstone Group Inc. (BX) has amassed $881 billion in assets under management (AUM). In addition to energy, commerce, and tech, the corporation invests in various other industries. One-third of Blackstone's total assets are private equity, but it also has a substantial stake in estate, credit, and wealth management solutions (totaling more than $300 billion). Refinitiv, Genealogy, and Bumble are one of its 107 portfolio firms.
KKR and Co.
Kohlberg Kravis Roberts & Co. Inc. (KKR) has $459 million in AUM. KKR was one of the first organizations to participate in large-scale stock buybacks, which the company continues to specialize in today. It was founded in 1976 and has its headquarters in New York.
Partners at CVC
CVC Capital Partners has roughly $122 billion in total assets under management (AUM), while its private equity platforms handle $92 billion in assets under management. More than 650 employees, including more than 300 investment professionals, work with CVC in 24 locations throughout the globe. It has invested in 114 private equity firms throughout the world. 13
Incorporated: Carlyle Group
An AUM of $293 billion, 1,800 employees globally, and 26 locations across six continents make up The Carlyle Group Inc. (CG). Washington, D.C., served as the company's headquarters and was created in 1987. Orion Breweries Ltd. of Japan and Supreme are among its significant current investments in its corporate and private equity segment.
Thoma Bravo has $91 billion in AUM and over 40 years of professional experience providing funding and strategic assistance to seasoned top management and developing software and technology firms. Conga and Anchorage are just a few well-known names on this group's client list.
According to the most recent currency rates, EQT A.B. (EQT.ST), based in Sweden, has an AUM of 73.3 billion euros, which translates to about $81.7 billion. More than 1,200 people work in 24 locations spanning Europe, Central America, and Asia-Pacific for the company founded in 1994. U.S. customers may be familiar with Flying Tiger Denmark, the business's best-known portfolio company
Partners of Vista Equity
Venture capital firm Vista Equity Partners invests only in companies that use software, data, and other forms of technology. Healthcare, advertising, and risk management are just areas in which the corporation has significant interests. 27 It was the most prominent private investment option ever generated by an independent private equity company when Vista concluded its $16 billion technology fund in September 2019.
Investors in private equity
One hundred and ninety-nine billion dollars is TPG Capital's AUM. 29 TPG Capital has its headquarters in San Francisco, established in 1992 by David Bonderman and Jim Coulter. The organization has a total of 12 different offices in eight different countries. The firm's notable acquisitions include Continental Airlines in 1993, Petco in 2000, and Burger King in 2002. Fender, Chobani, and Airbnb are just a few of the companies it now owns.
What are the best-paying private equity firms?
Investing in private equity is a good career choice. According to a Heidrick and Struggles study, salaries for services provided at private equity with much less than $20 billion of assets managed varied from $1.1 million in 2019 to as much as $3.7 million in incentives (AUM). Venture capital and commercial banking executives developed Peak Frameworks, a professional preparation platform. Peak Frameworks notes that Apollo Global Management is generally referred to as the highest-paying private equity company in the world when it comes to total remuneration.
In the private equity industry, what does a vice president make?
The overall amount of money you make as a private equity professional is usually based on the AUM of the company you work for. A firm's vice presidents are often paid more if the firm has a significant amount of AUM. Vice presidents at firms with AUM under $500 million received an average of $329,000 in 2019, according to Heidrick & Struggles' 2020 North American Private Institutional Investor Professionals Compensation Survey. The mean total cash remuneration for businesses with AUMs of $10 billion to $19.99 billion was $592,000.37.
To maximize earnings, a substantial fund is frequently raised from wealthy investors and reinvested by private equity companies. Private equity companies often participate in massive purchases and contentious leveraged buyouts, making it a hazardous business. Private equity businesses have suffered huge losses or even gone out of business altogether. However, all of the companies mentioned in this article have grown to be the most extensive and most successful in private equity.