Private equity firms manage investment capital obtained from institutional investors or high-net-worth individuals (HNWIs) to acquire equity ownership of companies through a variety of strategies, including leveraged buyouts and venture capital. Private equity firms operate with long-term investment horizons, typically five to seven years.
Here are 10 of the top private equity firms, ranked by funds raised from January 1, 2020, to December 21, 2024, according to Private Equity International. Major names like KKR, EQT, and Blackstone appear on the list, all of which landed in the top three spots,
Key Takeaways
- Private equity is an alternative form of private financing.
- It occurs away from public markets where funds and investors directly invest in companies or engage in buyouts of such companies.
- Private equity investments are typically available only to HNWIs.
- Private equity can take on various forms, from complex leveraged buyouts to venture capital.
- Major private equity firms include KKR, EQT, and Blackstone Group.
1. KKR
KKR (KKR), formerly Kohlberg Kravis Roberts, was founded in 1976 and is based in New York. KKR is known for being one of the first firms to engage in large-scale leveraged buyouts.
Among the firm’s noteworthy transactions are its 1989 leveraged buyout of RJR Nabisco and its 2007 buyout of TXU, the largest leveraged buyout on record. Some of its portfolio holdings are 1-800 Contacts and DoorDash.
2. EQT AB
Based in Sweden, EQT (EQT.ST) was founded in 1994. The firm is spread across Europe, North America, and the Asia-Pacific regions, and has funds within private capital (leveraged buyout, growth, and venture) and real estate.
3. Blackstone
Blackstone (BX) was founded in 1985 and is based in New York, with offices in London, Hong Kong, Beijing, and Dubai.
The company invests across a broad range of market sectors, including energy, retail, and technology. While private equity is its largest category of investments, Blackstone also has hundreds of billions of dollars in holdings in real estate, credit, and hedge funds.
Fast Fact
Private equity firms provide financial backing to startups and companies that are not traded on public stock exchanges.
4. Thoma Bravo
Thoma Bravo has more than 40 years of experience in providing capital and strategic support to experienced management teams and growing software and technology companies. Some of the companies in its portfolio include J.D. Power, Conga, and Anchorage Digital.
5. TPG
Founded in 1992 by David Bonderman and Jim Coulter, TPG (TPG) is based in Fort Worth, Texas. The company has over 25 additional offices across 13 countries.
Among the firm’s noteworthy transactions are its buyout of Continental Airlines in 1993, its acquisition of Petco in 2000 (with Leonard Green and Partners), and its leveraged buyout (along with Bain Capital and Goldman Sachs Capital Partners) of Burger King in 2002. Among its holdings are Chobani, Fender, and Airbnb.
6. CVC Capital Partners
Founded in 1981, CVC Capital Partners has 30 offices worldwide. Its private equity portfolio includes more than 140 companies around the globe, including Authentic Brands Group and Lipton Teas and Infusions.
7. Hg
Formed in 2000 and based in London, Hg focuses on investments in software and service businesses in Europe. It also has offices in Munich, New York, Paris, and San Francisco, with a portfolio of over 50 businesses
8. Hellman & Friedman
Hellman & Friedman is a San Francisco-based private equity firm with offices in New York and London. The company was founded in 1984 and focused on large-scale equity investments in growing businesses in developed markets. The company has invested over $115 billion in assets under management (AUM) as of December 31, 2024.
9. Clayton, Dubilier & Rice
Founded in 1978 by Gene Clayton, Marty Dubilier, and Joe Rice, the firm is commonly known in the industry as CD&R. The firm invests in companies across North America and Europe in various industries, including financial services, retail, healthcare, and technology.
10. Insight Partners
Insight Partners was founded in 1995 with a focus on “scale, focus, and experience.” According to its website, the firm helps companies focus on value and long-term business success. Its portfolio consists of companies in finance, human capital, technology, and real estate across North America, Europe, Africa, Asia, and other parts of the world.
How Do Private Equity Firms Profit From the Equity Stake in a Company?
After obtaining an equity interest in a company, private equity firms eventually profit by selling it outright or through an initial public offering (IPO). When especially large investments are required, these firms often partner with other private equity firms to raise the necessary capital and reduce risk. Most firms specialize in one or more industries or investment strategies where they have particular expertise.
How Can Regular Investors Access Private Equity Investments?
While traditionally limited to institutional investors and ultra-HNWIs, regular investors now have several pathways to access private equity. The most accessible option is through exchange-traded funds (ETFs) that track publicly listed private equity companies, requiring no accreditation and minimal investment amounts. These ETFs offer exposure to publicly listed private equity firms.
Which Private Equity Firms Are Publicly Traded?
The Bottom Line
Professional investors at private equity firms raise a large fund (usually from affluent investors) and reinvest those funds to seek the biggest possible profits. The nature of the private equity industry is risky, as firms often engage in large acquisitions and controversial leveraged buyouts.
