Largest Private Equity Firms Today
You know all those companies and products you love? Most of them did not become a success overnight. Or by themselves. Some had direct help from private equity, a type of investment that provides financial and operational support to businesses that are not public.
Most private equity firms are not household names, but many of them are doing quite well. In 2020, private equity assets under management grew to $4.4 trillion of the $100-plus trillion wealth management industry.
These are the names you should know in private equity. They are the largest private equity firms, based on the funds they've raised since 2015, and they manage the assets that power the world.
What Is Private Equity?
Before we get to to the heavy hitters, let's review how private equity got here. Equity means ownership. In accounting, equity is measured by subtracting liabilities from the value of an asset. So if someone owns a house worth $100,000 and owes $50,000 on the mortgage used to buy the house, the difference of $50,000 is equity.
Private equity is equity held in a private business. General partners run private equity firms and raise money from investors, or limited partners. That money is used to buy startups and other companies (sometimes distressed) through different types of transactions and investment strategies, including leveraged buyouts. Private equity firms then manage the business to maximize value.
The concept of private equity is not new. According to Financial Poise, it has roots in colonial America, when the Massachusetts Bay Company collected money to fund Britain's new American colonies. While settlers in the colonies worked to build up the economy in America, people who stayed in England funded the venture, looking to get a return on the investment.
The modern industry of private equity was born in 1946. Today, it does big business and continues to look for ways to grow as market forces shift. Those moves can produce adverse effects (such as layoffs) and bring controversy. But love or hate private equity, it's impossible to deny its impact on the world. By 2025, private equity assets are projected to surge past $9 trillion.
25. Partners Group
Headquarters: Baar, Switzerland
Founded: 1996
Founders: Marcel Erni, Urs Wietlisbach, Alfred Gantner
Five-year funds raised: $17.87 billion*
Assets under management (AUM): $96 billion
Notable current investments: Civica, KinderCare Education*
*The source of five-year funds and notable investments is Visual Capitalist.
Bottom Line: Partners Group
Partners Group is a leading private market investment manager and has more than 1,500 professionals across 20 offices worldwide. With $96 billion in assets under management, they specialize in financing and developing real estate, infrastructure and other companies that have high-potential returns.
They pride themselves on creating value in their investments through active and long-term ownership. They target transformative trends and believe offense is the best defense in challenging economic times.
Partners Group website
24. Hillhouse Capital Group
Headquarters: Hong Kong, Beijing and Singapore
Founded: 2005
Founder: Lei Zhang
Five-year funds raised: $17.89 billion
Assets under management: $50 billion
Notable current investments: Miniso, Belle International
Bottom Line: Hillhouse Capital Group
Lei Zhang got his MBA and a master's in international relations from Yale in 2002. A few years later, he founded Hillhouse Capital Group with $20 million in seed capital from the university's endowment. The firm now has over $50 billion in assets under management.
Zhang, who remains the chairman and chief investment officer, credits Hillhouse Capital's success to an entrepreneurial ethos and broad investment philosophy. Hillhouse manages capital for institutional clients such as university endowments, foundations, pension funds and family offices.
Hillhouse grew by being one of the first investment firms to back China's internet sector, including investing in Tencent, one of the world's most valuable internet companies, and Baidu, the Google of China. Besides technology, Hillhouse also invests in more traditional sectors like consumer, healthcare, financials and services.
Hillhouse Capital Group website
23. Platinum Equity
Headquarters: Beverly Hills, California
Founded: 1995
Founder: Tom Gores
Five-year funds raised: $18 billion
Assets under management: $19+ billion
Notable current investments: Livingston International, Palace Sports & Entertainment
Bottom Line: Platinum Equity
Tom Gores founded Platinum Equity after being an investor in smaller businesses, where he developed his core principles of empowerment, hard work and integrity. After proving himself, he turned Platinum Equity into one of the largest private equity firms in the world by creating a new approach to mergers, acquisitions and operations.
Gores remains the chairman and CEO of Platinum Equity and has built a strong leadership team of partners, managing directors and principals that makes investment decisions. This team — or operating machine, as they call it — sources, negotiates and closes deals, then operates the companies, and sells them.
The model works. Platinum Equity has completed more than 300 acquisitions. It also has more than $19 billion of assets under management with a portfolio of approximately 40 operating companies that serve customers around the world.
Platinum Equity website
22. Francisco Partners
Headquarters: San Francisco, California
Founded: 1999
Founders: Dipanjan Deb, Benjamin Ball, Neil Garfinkel, Sanford R. "Sandy" Robertson, David Stanton
Five-year funds raised: $19.13 billion
Assets under management: $12 billion
Notable current investments: Verifone, GoodRx
Bottom Line: Francisco Partners
Francisco Partners is one of the most respected private equity firms in technology investing. Since the firm's founding in 1999, they have raised over $24 billion and have over 110 portfolio companies with over 175 follow-on acquisitions.
Their team of 50-plus investment professionals invests strategically over time and uses a flexible capital approach that is customized for each situation and transaction type.
This path has helped the firm establish a reputation for building strong relationships and delivering excellence.
Francisco Partners website
21. EnCap Investments
Headquarters: Houston, Texas
Founded: 1988
Founders: David B. Miller, Gary R. Petersen, D. Martin Phillips and Robert L. Zorich
Five-year funds raised: $21.33 billion
Assets under management: $18 billion
Notable current investments: Pegasus Resources, Lotus Midstream
Bottom Line: EnCap Investments
EnCap Investment is one of the world's leading providers of growth capital to independent energy companies. They have a simple investment philosophy — identify the best management teams with compelling business plans, give them money to grow and provide strategic support.
The numbers don't lie. They have raised 21 institutional oil and gas investment funds totaling more than $37 billion and currently manage capital for more than 350 U.S. and international investors.
Since 1988, they have invested $22 billion in more than 240 companies and generated consistent, strong returns across multiple industry and hydrocarbon price cycles.
EnCap Investments website
20. Brookfield Asset Management
Headquarters: Toronto, Ontario, Canada
Founded: 1899
Founders: William Mackenzie, Frederick Stark Pearson
Five-year funds raised: $21.69 billion
Assets under management: $575 billion ($70 billion in private equity)
Notable current investments: Multiplex, Westinghouse Electric
Bottom Line: Brookfield Asset Management
Brookfield Asset Management is an alternative asset manager with over $575 billion in assets under management. With over 120 years as owners and operators, they have a long tradition of investing in high-quality assets and businesses.
Today, Brookfield has 2,000 assets in 30 countries across five continents that form the backbone of the global economy. The scale of their operations gives them access to proprietary deal flow — the goal of most investor sourcing efforts.
They also have access to significant capital, and the size of their balance sheet allows them to pursue transactions others can't consider.
Brookfield Asset Management website
19. Permira
Headquarters: London, England
Founded: 1985
Founders: Nicholas Ferguson
Five-year funds raised: $22.21
Assets under management: $36.34 billion
Notable current investments: Dr. Martens, Informatica
Bottom Line: Permira
Permira specializes in leveraged buyouts and has made 260 private equity investments in five key sectors: consumer, financial services, healthcare, industrial tech and services, and technology.
It has 50 current investments in companies across the world (such as LegalZoom, Genesys and The Knot Worldwide) and $53.9 billion of committed capital.
Permira employs over 250 people in 14 offices across North America, Europe and Asia, including London, New York City, Menlo Park, Tokyo and Hong Kong.
Permira website
18. General Atlantic
Headquarters: New York, New York
Founded: 1980
Founders: Charles F. Feeney
Five-year funds raised: $22.42 billion
Assets under management: $38.3 billion
Notable current investments: Airbnb, Vox Media
Bottom Line: General Atlantic
General Atlantic has something no other private equity firm has — Charles F. Feeney. The billionaire founded the firm in 1980 after getting rich from the Duty Free Shoppers Group, which he cofounded in 1960.
Freeney was known as the billionaire who wanted to die broke, and now the 89-year-old has given away all his money to charity, over $8 billion over four decades, in almost total secrecy. He's living on $2 million, and his giving inspired two of the world's richest men, Bill Gates and Warren Buffet, to have a commitment to philanthropy and give away their own billions. They took the Giving Pledge, which has enlisted more than 90 of the world’s richest to (eventually) grant half their wealth to charity.
"I cannot think of a more personally rewarding and appropriate use of wealth than to give while one is living — to personally devote oneself to meaningful efforts to improve the human condition," said Freeney, who founded The Atlantic Philanthropies, one of the largest private charitable foundations in the world.
That same spirit is part of the culture at General Atlantic, which has 179 investment professionals based in New York City, Greenwich, Palo Alto, Sao Paulo, London, Munich, Amsterdam, Beijing, Hong Kong, Mumbai, Shanghai, Mexico City, Singapore, and Jakarta.
They work with leading entrepreneurs and innovative growth companies across four sectors (consumer, financial services, healthcare, and technology) to deliver value for family and institutional capital partners. They also are exploring new investment opportunities in emerging markets and technology opportunities in India, China, and Latin America.
"Some of the business models that are innovators in emerging markets will become the next global norm," General Atlantic CEO Bill Ford said in 2019.
General Atlantic website
17. BlackRock
BlackRock
Headquarters: New York City, New York
Founded: 1988
Founders: Bob Kapito, Larry Fink
Five-year funds raised: $22.46 billion
Assets under management: $7.8 trillion ($21 billion in private equity)
Notable current investments: Authentic Brands Group, Qumulo
Bottom Line: BlackRock
BlackRock is the world's largest asset manager and got there through differentiation with more than 16,000 employees in 35-plus different countries who speak over 80 languages. It has invested in private equity since 1999.
BlackRock's private equity team manages $21 billion in assets across many different industry sectors, including healthcare, consumer and retail, technology/media/telecom, industrial goods and services, financial services, energy and real assets, and business services.
BlackRock also offers other private market alternatives and sees opportunities for investors. That's because deal flow rebounded in the second half of 2020. The greatest increases were in transportation, healthcare and technology, according to Jim Barry, the chief investment officer of BlackRock Alternative Investor. The biggest decrease was in energy.
So what's the outlook for 2021? A new investment order. BlackRock sees these investment themes shaping markets: new nominal yields, remaking of global supply chains, increased focus on sustainability, rising inequality and dominance of e-commerce at the expense of retail.
BlackRock website
16. Insight Partners
Headquarters: New York City, New York
Founded: 1995
Founders: Jeff Horing, Jerry Murdock
Five-year funds raised: $22.74 billion
Assets under management: $30+ billion
Notable current investments: Monday.com, HelloFresh
Bottom Line: Insight Partners
At Insight, no one flies solo. They help software companies navigate the challenge of scaling up, so they go from "can we?" to "how far can we go?"
The strategy has worked. Since launching in 1995, they have more than $30 billion in capital commitments, have invested in more than 400 companies, and have completed over 200-plus portfolio acquisitions.
Companies in their global ScaleUp network include Shopify, Shutterstock, Twitter, Tumblr, Udemy and Wix. Not a bad lineup.
Insight Partners website
15. Thoma Bravo
Headquarters: Chicago, Illinois
Founded: 1980 (Golder Thoma & Co.), 2008 (changed change)
Founders: Carl Thoma, Orlando Bravo, Lee Mitchell, Scott Crabill
Five-year funds raised: $25.29 billion
Assets under management: $73 billion ($30 billion in private equity)
Notable current investments: Dynatrace, McAfee
Bottom Line: Thoma Bravo
Thoma Bravo keeps growing. With a focus on investing in software and technology companies, it is up to over $73 billion in assets under management.
The firm pioneered the buy-and-build investment strategy and first applied this strategy to the software and technology industries 20-plus years ago. Since then, Thoma Bravo has acquired more than 270 software and technology companies representing over $79 billion of value.
Their investment philosophy is centered around collaboration with existing management teams to drive results and innovation. They also invest in growth initiatives and strategic acquisitions to create long-term value for their companies.
Thoma Bravo website
14. Apollo Global Management
Headquarters: New York City, New York
Founded: 1990
Founders: Leon Black, John Hannan, Josh Harris, Marc Rowan, Craig Cogut, Arthur Bilger, Antony Ressler
Five-year funds raised: $25.42 billion
Assets under management: $433 billion ($77 billion in private equity)
Notable current investments: ADT, Chuck E Cheese's
Bottom Line: Apollo Global Management
Apollo is one of the world's largest alternative investment managers and serves many of the world's most prominent institutional investors in dozens of countries.
Private equity has been a cornerstone of Apollo's business since its founding in 1990 with 150-plus portfolio companies. In the past 10 years, Apollo's total assets under management have grown 7.5 times, and its private equity AUM is up to $77 billion, or 18 percent of the firm's total AUM.
Some of the businesses Apollo has helped build are Hostess, ADT, Chuck E. Cheese's, McGraw-Hill Education, Caesar's Entertainment, Jacuzzi, and Smart & Final.
Apollo Global Management website
13. Bain Capital
Headquarters: Boston, Massachusetts
Founded: 1984
Founders: Mitt Romney, Bill Bain
Five-year funds raised: $25.74 billion
Assets under management: $105 billion
Notable current investments: Virgin Voyages, Canada Goose
Bottom Line: Bain Capital
Bain Capital is a private investment firm with 21 offices worldwide and over 1,200 team members.
Its private equity numbers also are impressive:
- 940-plus investments (primary and add-on) over the firm's history since 1984
- 111 billion in revenue, realized in 2018 from Bain Capital Private Equity portfolio companies
- 426,700-plus employees working for Bain portfolio companies around the world
Some of Bain's portfolio companies include Bob's Discount Furniture, Zellis and Brillio. This is the full list of current and former portfolio companies managed by Bain Private Equity.
Bain Capital website
12. Cinven
Headquarters: London, United Kingdom
Founded: 1977
Founders: Lionel Anthony
Five-year funds raised: $26.15 billion
Assets under management: $27 billion
Notable current investments: Kurt Geiger, Hotelbeds
Bottom Line: Cinven
Cinven was founded in 1977 and has become a leading global private equity firm. It has more than 100 investment professionals and more than 190 staff across its global offices in nine international locations in Guernsey, London, New York, Paris, Frankfurt, Milan, Luxembourg, Madrid, and Hong Kong.
Cinven focuses on six key sectors: business services, consumer, financial services, healthcare, industrials, and technology/media/telecommunications. The firm has invested in more than 130 companies and has $27 billion in assets under management.
Cinven prides itself on taking a responsible approach toward its portfolio companies and everything connected to them — their employees, suppliers, local communities and environment. The firm also has a strong track record of growing businesses organically and through buy and build.
Cinven website
11. Leonard Green & Partners
Headquarters: Los Angeles, California
Founded: 1989
Founders: Leonard I. Green
Five-year funds raised: $26.31 billion
Assets: $38.5 billion
Notable current investments: Lucky Brand, Signet Jewelers
Bottom Line: Leonard Green & Partners
Leonard Green & Partners has raised over $40 billion of committed capital since inception and invested in over 95 companies. These are the tenets of its investment strategy:
1. Market-leading companies
2. Growth companies with multiple ways to win
3. World-class management teams
4. Focus on free cash flow and other margins of safety
5. Flexible approach to structure
6. Proprietary sourcing or partner of choice in competitive processes
Some of LGP's portfolio companies are The Container Store and Caliber Collision.
Leonard Green & Partners website
10. Vista Equity Partners
Headquarters: Austin, Texas
Founded: 2000
Founders: Robert F. Smith
Five-year funds raised: $32.1 billion
Assets under management: $73 billion
Notable current investments: Finastra, Mindbody
Bottom Line: Vista Equity Partners
Robert F. Smith is not your average founder of a private equity firm. And Vista Equity Partners is not your average private equity firm.
Smith is the billionaire tech investor and philanthropist who paid off an entire class' student loans at Morehouse College and extended the $34 million gift to include the debt owed by the students' parents as well. Smith can afford it. He's the richest Black man in America, worth an estimated $7.05 billion.
Vista Equity Partners has more than $73 billion in assets under management and 20 years of investing exclusively in enterprise software. The firm "believe[s] the transformative power of technology is the key to an even better future — a healthier planet, a smarter economy, a diverse and inclusive community, and a broader path to prosperity."
Vista's private equity arm has invested in 60-plus companies and made over 455 transactions with an aggregate transaction value of over $155 billion. Now you know why Vista's motto is empower enterprise software companies powering the world. All the investors, technologists, entrepreneurs and business operators at Vista know what they're doing.
Vista Equity Partners website
9. Advent International
Headquarters: Boston, Massachusetts
Founded: 1984
Founders: Peter Brooke
Five-year funds raised: $33.49 billion
Assets under management: $66 billion
Notable current investments: Cobham, Serta Simmons Bedding
Bottom Line: Advent International
Advent International was founded in 1984 and established its private equity strategy in 1989. Since then, Advent has invested $52 billion in over 360 private equity investments across 41 countries and today manages $66 billion in assets.
The firm's investment strategy remains the same as it was 30 years ago — invest in well-positioned companies and partner with management teams to create value through sustained revenue and earnings growth. Their five core sectors are business and financial services, healthcare, industrial, retail/consumer/leisure and technology.
On top of that, Advent has offices in 12 countries on four continents. This geographic reach gives them a broad international perspective (key in the global marketplace) and a deep understanding of local markets. This can help companies expand into new territories, tap into global markets and apply international best practices with local conventions and laws.
Advent International website
8. EQT Partners
Headquarters: Stockholm, Sweden
Founded: 1994
Founders: Conni Jonsson
Five-year funds raised: $34.46 billion
Assets under management: $56.3 billion
Notable current investments: Dunlop Protective Footwear, SUSE
Bottom Line: EQT Partners
EQT wants to future-proof across the globe and make a positive impact with everything they do. So far, so good.
Since EQT's inception in 1994, the Swedish firm has $91 billion in capital commitments and 16 active funds with companies in Europe, Asia-Pacific and America.
The firm is headquartered in Stockholm and has invested more than $75 billion in around 210 companies and exited around 105.
EQT Partners website
7. CVC Capital Partners
Headquarters: Luxembourg, Luxembourg
Founded: 1981
Founders: Donald Mackenzie, Rolly van Rappard, Steve Koltes
Five-year funds raised: $35.88 billion
Assets under management: $109.1 billion ($82 billion in private equity)
Notable current investments: Petco, Premiership Rugby
Bottom Line: CVC Capital Partners
CVC Capital Partners was established in 1981 and looked to excel as an organization from Day 1. It is a world leader in private equity and credit with $109.1 billion of assets under management.
CVC's private equity platform manages $82 billion of those assets and comprises four strategies: Europe/Americas, Asia, strategic opportunities, and growth partners. Their focus is on the consumer, service and technology sectors.
CVC has 90 current investments and 62 exited investments and is one of the most geographically diverse private equity networks in the world with 23 offices globally.
CVC Capital Partners website
6. Neuberger Berman
Headquarters: New York, New York
Founded: 1939
Founders: Roy Neuberger, Robert Berman
Five-year funds raised: $36.51 billion
Assets under management: $339 billion ($73 billion in private equity)
Notable current investments: Marquee Brands, Telxius
Bottom Line: Neuberger Berman
Time has not slowed down Neuberger Berman, which was founded over 80 years ago and is 100 percent owned by its employees today.
The firm has developed a top-notch reputation as a place to work for investors. In 2016, it was named the best place to work in asset management for firms with more than 1,000 employees. That's why it has maintained a 97 percent retention rate among its senior investment teams over the past decade.
They also know how to make money, and private markets have become a bigger priority at Neuberger Berman. "Alternative investing is more central to the modern portfolio than ever," said Anthony D. Tutrone, the global head of alternatives. "Our broad range of alternative portfolios seek to address a range of investor needs — from risk management to income and growth."
Neuberger Berman website
5. Warburg Pincus
Headquarters: New York City, New York
Founded: 1966
Founders: Eric Warburg, Lionel Pincus
Five-year funds raised: $37.59 billion
Assets under management: $56+ billion
Notable current investments: Airtel, Sundyne
Bottom Line: Warburg Pincus
Private equity is the only business at Warburg Pincus, which has been investing for over 50-plus years. In that time, they have invested in over 910 companies in more than 40 countries.
Today, the firm has over $56 billion in assets under management and invests in many sectors, including energy, financial services, healthcare, real estate and technology.
They have a "one firm" approach to investing. With 14 offices in 10 countries, they make sure that the right people with the right experience in their network are available to every entrepreneur and every business.
Warburg Pincus website
4. TPG Capital
Headquarters: San Francisco, California
Founded: 1992
Founders: David Bonderman, James Coulter, William S. Price III
Five-year funds raised: $38.68 billion
Assets under management: $85 billion
Notable current investments: Cirque du Soleil, Cushman & Wakefield
Bottom Line: TPG Capital
TPG started as the Texas Pacific Group in 1992. A few years later, they changed their name and were off to the races.
Along the way, they have been trailblazers, becoming one of the first private equity firms to invest in China and throughout Asia. They also have invested in some big companies you might have heard of like Uber and Airbnb.
And they have an impressive portfolio of companies.
TPG Capital
3. Kohlberg Kravis Roberts & Co.
Headquarters: New York City, New York
Founded: 1976
Founders: Henry Kravis, George R. Roberts, Jerome Kohlberg Jr.
Five-year funds raised: $54.76 billion
Assets under management: $221.8 billion ($119.58 billion in private equity)
Notable current investments: Axel Springer SE, Epic Games
Bottom Line: Kohlberg Kravis Roberts & Co.
KKR's private equity strategy has served the firm well. Thanks to a disciplined approach that focuses on long-term value, KKR has invested in and partnered with industry leaders and emerging companies built for success.
KKR invests in financial services, healthcare, media, technology and telecommunications across the globe. After a tough year for the world in 2020, the firm is optimistic about the future and the potential for economic growth.
"2021 represents a unique opportunity, a new beginning of sorts, we believe," writes Henry McVey, KKR partner and head of global macro and asset allocation, CIO of KKR Balance Sheet. "Indeed, almost all our research at KKR tells us that we have entered a new, sustainable business cycle, and though there will inevitably be setbacks along the way, this recovery will continue to present heightened opportunities. ... Said differently, we see reflation without problematic inflation in the near-term."
KKR website
2. The Carlyle Group
Headquarters: Washington, D.C.
Founded: 1987
Founders: William E. Conway Jr., Daniel A. D'Aniello, David Rubenstein
Five-year funds raised: $61.72 billion
Assets under management: $230 billion ($85 billion in private equity)
Notable current investments: ZoomInfo, PPD
Bottom Line: The Carlyle Group
The Carlyle Group used to be No. 1, as in the world's largest private equity firm by capital raised. Now, they're No. 2, and they're still posting big numbers.
They have $85 billion in assets under management with 169 active portfolio companies and 250-plus investment professionals in 30 offices on six continents. "Our expansive global footprint and deep industry expertise give us a significant market advantage to unlock value and uncover opportunities," says Pete Clare, The Carlyle Group's CIO for corporate private equity.
Their deep industry expertise includes aerospace/defense/government services, consumer/media/retail, financial services, healthcare, industrial and transportation, technology and business services.
The Carlyle Group website
1. The Blackstone Group
Headquarters: New York, New York
Founded: Peter G. Peterson and Stephen A. Schwarzman
Founders: Peter G. Peterson, Stephen A. Schwarzman
Five-year funds raised: $95.95 billion
Assets under management: $584 billion ($98 billion in private equity)
Notable current investments: Refinitiv, Merlin Entertainments
Bottom Line: The Blackstone Group
Blackstone is the largest alternative investment firm in the world. And they didn't get to be No. 1 by accident. When they partner with a business, they seek long-term investment opportunities that can lead to big returns and economic growth. Their success comes from years of experience and has helped their companies withstand market cycles.
Today, Blackstone has $98 billion in private equity assets under management, 97 portfolio companies, and $37 billion of capital to invest. They invest across industries in established and growth-oriented businesses across the globe and always are looking to do three things: disciplined due diligence, make a transformative impact, have staying power.
“We are constantly looking for situations where we are able to add value in a way that our competitors don’t," said Joseph Baratta, Blackstone's global head of private equity.
That's the way to stay on top in the private equity game.
Blackstone website