Private Equity Firms List Of Top 10 Firms Across The Globe

List of Top 10 Private Equity Firms

• Apollo Global Management LLCBlackstone Group LPCarlyle GroupKKR & Company LPAres Management LPOaktree Capital Management LPFortress Investment Group LLCBain Capital LLCTPG Capital LPArdian

Private equity firms are investment managers who invest in private equities of many corporations by following various strategies like a leveraged buyoutLeveraged BuyoutLBO (Leveraged Buyout) analysis helps in determining the maximum value that a financial buyer could pay for the target company and the amount of debt that needs to be raised along with financial considerations like the present and future free cash flows of the target company, equity investors required hurdle rates and interest rates, financing structure and banking agreements that lenders require.read more, growth capital, venture capital, and many more. Private equity firms are the investors responsible for raising pools of capital or funds for equity contributions. But you may think about why they do that? Private equity firms are treated as financial sponsors and take a minority position in the operating firm where they invest. They receive a periodic management fee and the share of profits earned for each fund managed.

In this article, we will discuss the world’s top 10 private equity firms across the globe. You would get to know their rank, turnover/revenue, and services. The rank has been given according to the volume of the firm’s assets.

Let’s get started.

#1 – Apollo Global Management LLC

Bank Services:

Apollo Global Management LLC is the number one private equity firm globally in terms of the volume of assets. They primarily deal with private equity, credit, and real estate. They are the most sought-after private equityPrivate EquityPrivate equity (PE) refers to a financing approach where companies acquire funds from firms or accredited investors instead of stock marketsread more firm which values customers more than everything else. They have a great experience of 24 years, during which they have added tremendous value to the customers and earned an incredible reputation.

Office culture/career:

The managing partners in Apollo have been working together for more than 24 years, and they have a special team of 353 people who all cater to investment. Their offices range from New York to Chicago to London to Delhi. They value cultural diversity and work as a dynamic team for their clients.

Strength/weakness:

They demand themselves as “contrarian, value-oriented” investors, and their work is evident. Moreover, their team operates worldwide – from developing to a developed country that helps them become one of the world’s most customer-centric private equity firms.

#2 – Blackstone Group LP

The forte of Blackstone Group LP in its private equity wing is its ability to find the right companies to invest in. They don’t only provide capital to the businesses they choose, and they also offer a bottom-up strategy that works as a major transformation for the companies.

Along with the investment, they help in the operational improvement of a lean process, IT optimization, employee health care, leadership development, and energy sustainability. They have been serving over 92 companies with over 250 private equity professionals.

For over 30 years, they have been their huge client base. They have developed a culture that adds value to their internal customers (i.e., employees); rather, it also helps clients get served well. They have great programs for women and veterans, and they value all people from all cultures. If you ask them what they value most about their culture, they say relationship. They have been named as the “best place to work” for three consecutive years by Pensions & Investments.

Their major strength is more than 2000 employees in 21 offices. They value diversity and employ more than 570,000 people across the globe.

#3 – Carlyle Group

The primary advantages of working with Carlyle Group are its global network, the operating executives who handle all the transactions, depth of industry expertise, and historical data from their vast portfolio. Since 1990, they have invested in 535 equity transactions and generated over US $66 billion, both in realized and unrealized gains. They have been handling a total of 32 buyout and growth capitalGrowth CapitalGrowth Capital, also called Expansion capital, is the amount of money offered to the fast-growing businesses requiring finances to expand their operations or new market ventures. All in all, it helps facilitate target firms for accelerating their growth rate. read more funds across six continents, and they have a presence in one of the largest emerging markets in the world.

The best part of the Carlyle group is not their investment (which is one of the best in volume and number of transactions across the globe) but their realization of being a sustainable investor and offering a diverse culture to its employees where the employees can grow in different dimensions.

#4 – KKR & Company LP

KKR & Company LP maintains a unique customer base in the three region-wise industries – Core Americas Industries, Core European Industries, and Core Asian Industries. They are one of the most esteemed private equity partners for 83 companies. GoDaddy, Haier, is a couple of companies where they invest. They have mentioned that the secret of their success is their deep knowledge of the market and the ability to execute flawlessly on the deals they take up. Moreover, they have been serving clients for more than 40 years, thus understanding how to add value to their stakeholders and stand out in the crowd.

KKR & Company LP has developed a great culture over 40 years in the market. They have seven core values that they demonstrate in their every investment and dealing with every customer. They are – Teamwork, Integrity, Relationship, Accountability, Innovation, Excellence, and Diversity. As of 31st December 2015, KKR & Company LP has a team of over 1200 employees and 370 professionals in over 16 countries globally.

The best part of KKR & Company LP is that they are as keen to upgrade their knowledge and skills as they are eager to invest in a new private equity fund. Thus they created the KKR Global Institute, which teaches emerging trends of the investment world to its team.

#5 – Ares Management LP

Ares Management LP is one of the most sought-after private equity firms globally. Their services can broadly be divided into two parts. One is corporate and private equity, and another is energy infrastructure. They have mentioned that they have “a demonstrated ability to deploy flexible capital.” They have three separate investment teams that serve in North America, Europe, and China. Their primary focus is North America and Europe. They have strong franchises to pursue opportunistic, shared-control investments.

The culture of Ares revolves around three basic criteria – being the market leader in what they do, having an experienced team to solve all sorts of issues and problems, and having a flexible approach to deal with any crisis if and when they appear. Their 870 employees in offices in the US, Europe, and Asia have diversified their human capital and made them one of the best employers to encourage diversity in the workplace.

The best part of Ares Management LP is that they are one of the most consistent private equity managers in the US, with constant growth in the international arena. In North America alone, they have invested in over 25 private equity funds.

#6 – Oaktree Capital Management LP

Oaktree Capital Management LP is very transparent in its dealings. Their investment philosophy revolves around two things – taking advantage of market inefficiency and narrowing your focus to specialized services so that they can help clients achieve extraordinary results. They choose the businesses to invest in where their potential for generating profit outweighs the risk involved. They don’t only emphasize superior performance; they also ensure that superior performance is achieved with the least risk and uncertainty.

They are very proud of their culture and believe in a shared vision. They know that no matter whatever position the person has, they work toward achieving a common goal that the organization has set for itself. Moreover, they can create a culture where the employees can thrive and reach for their highest visions, making them stay in the organization for a very long time. They have been operating in 13 countries and over 18 cities worldwide.

The advantage of Oaktree is its employees. They often say they are just 23 years old, but their cumulative investment experience is more than 760 years.

#7 – Fortress Investment Group LLC

Fortress Investment Group LLC is one of the most esteemed investment firms in America and Europe. Their investment philosophy in private equity funds revolves around making control-oriented investments. They typically invest in cash-flow generating, asset-based businesses in Western Europe and Northern America. There are many sectors they invest in – transportation and infrastructure, financial services, gaming, senior living, and real estate. The best part of this investment firm is that they invest in businesses or situations that other investors overlook or don’t want to address. For example, they invest in companies suffering from capital marketsCapital MarketsA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more dislocation, negative market sentiment, or financial distress.

The office culture is diverse, but they are yet to explore opportunities in the emerging market in Asia. They have a few branches in Asia – in Japan and China, but they have not developed the market yet. They have a strong community exchange role where they invest a lot of time, money, and effort to make their community count. The employees feel lucky to work in such a rich culture and with a company whose one of the core values is giving.

It is what separates Fortress from other investment firms. They have invested over the US $3.8 million in more than 700 charities for their commitment to helping their community thrive.

#8 – Bain Capital LLC

Bain Capital is one of the most important names in private equity. Its core focus is on five sectors – consumer, retail & dining, financial & business services, healthcare, industrial & energy and technology, media, and telecom. It started in 1984, and since then, they have been investing in companies that are passionate about growth. Since then, they have invested in over 280 companies. They invest in a broad array of investment types, in different business cyclesBusiness CyclesThe business cycle refers to the alternating phases of economic growth and decline.read more, and in various world regions. Before investing in any business, they think about the strategic perspective of the business and how they can create value for the business in a way that is not usually followed by the majority.

Their primary focus on culture is stunning results. Thus while hiring, every employee is expected to extract their best. They are a global organization. They started in 1984 in America. In 2000, they expanded their business to Europe, and in 2005 they entered Asia. They have nine offices on three continents.

They have been serving their customers for over 30 years now, and their comparative advantageComparative AdvantageIn order to determine comparative advantage, the opportunity cost of each item from each country needs to be calculated. Then, on a comparative table, these costs are plotted to get the comparative advantage.read more is their ability to differentiate in private equity investment.

#9 – TPG Capital LP

With more than two decades of experience, TPG Capital LP is now viewed as one of the most reputed investment firms in the world. They have invested more than the US $50 billion in more than 150 transactions. They realized that what sets them apart is their ability to look at each transaction or investment with a fresh perspective.

The office culture is quite diverse. They are in America, Europe, Asia, and Australia. They work as a team, and every transaction they get involved in is an opportunity for the team to grow and to help increase the commitment to execute the shared vision they have.

The best part of TPG is its focus on sustainability and due diligence.

#10 – Ardian

It is one of the most sought-after private equity firms in the world. In these last 20 years, Ardian has managed/advised the US $55 billion in total funds. Their investment philosophy revolves around three core values – excellence, loyalty, and entrepreneurship. Ardian has invested in over 130 companies.

Ardian is a one-stop place for diversity, dynamic culture, and extraordinary talents. They have 12 offices all over the globe (America, Europe & Asia), 130 investment professionals, and 410 plus employees working for them.

They have received several awards for their excellent work in private equity funds. In December 2015, they got in the Private Equity Exchange & Awards 2015, and they have received two gold awards.

Recommended Articles –

This article is a guide to Private Equity Firms. Here we discuss the list of top 10 Private Equity Firms across the globe and their core services, office culture, strengths & weaknesses. You may also have a look at the following articles –

• Private Equity Market in GermanyServices Offered by Private Equity in IndiaOverview of Private Equity in South AfricaOverview of Private Equity in the UKVenture Capital Financing