Private equity is all about private financing where investors invest in companies or get engaged in buyouts. The investments are generally available for high net worth individuals. The professionals at private equityoperate with a notion of long-term investment horizons, say, five to seven years. Once they gain an interest in a company, they look for ways to profit by selling it or through an initial public offering (IPO). They may also partner with other PE firms; in case they are in need of large investments and reduce risk. Partnering with PE firms seems to be of great help as many firms specialize in one or more investment strategies or industries.
Let’s take a look at the 5top US private equity firms as ranked under total Assets Under Management (AUM) as of December 31, 2019.
The Blackstone Group Inc.
Blackstone Group Inc., headquartered in New York, leads with USD 571 billion in total AUM. The company invests in energy, technology, and retail market sectors. With 2400 employees and 95 portfolio companies, it earns more than USD 79 billion in annual revenue. They have strong holdings in real estate, hedge funds, and credits.
The Carlyle Group
The Carlyle Group, headquartered in Washington DC, leads with USD 201 billion in total AUM. They have raised USD 40.1 billion in the last five years. The companies’ major business lines include global credit, real estate, investment solutions, and real estate. With 1600 workers and 200 portfolio companies, their major investments include Veritas Holdings, Wesco Aircrafts Holdings, Ortho-clinical Diagnostics, Nature’s bounty, and Discover Org Holdings.
Kohlberg Kravis Roberts
Being one of the top private equity firms, it is popularly known as KKR. The company is headquartered in New York manages USD 195 billion in total assets. In the last five years, it has raised USD 41.6 billion. The business areas include hedge funds, credit, real estate, and financial services similar to the other large PE firms.
With 1300 employees, the major portfolio companies include GoDaddy, PEMEX, UFC, Midstream, and First Data.
This Texas-based firm was formerly known as Texas Pacific Group. It has its second headquarter in San Francisco too. The firm has raised USD 36.1 billion in the last five years and manages private equity, credit, hedge fund divisions, and real estate just like other PE firms. Energy and technology remain the main focus industries.
Some of the major investments include First Data, Univision communications, Harrah’s entertainment, and Neiman Marcus.
Apollo Global Management Inc.
Apollo Global Management Inc. is headquartered in New York and has USD 331 billion in total AUM. It has raised USD 24 billion in the last five years. With 1,110 employees and more than 150 portfolio companies, the firm is known for leveraged buyouts and buying distresses companies.
It is known that the companies’ investments come from public pensions and sovereign wealth funds. Few of the major portfolio companies include Ceaser’s entertainment, Rackspace, Qdoba, and CareerBuilder. The company is known for going ‘against the grain’ with reference to investors’ strategy.
Other best private equity firms include CVC Capital Partners, General Atlantic, Ares management, Clayton Dubilier and Rice, Advent International.
The structure and profession of these PE firms seem interesting and inspiring, right?
To get hired by these kinds of private equity industry, you need to learn lots and lots of financial modeling, presentation making, working on transactions, and managing portfolio companies. Clearing exams like CPEP exams offered by USPEC will be the best choice to enter the competition.
To manage portfolio companies, you should excel in financial planning, financial analysis, performance measurement, optimization of operational efficiency, and so forth. Also, get upskilled with the remote technology, back-office infrastructure, and engage in virtual training. Become tech-savvy, gain knowledge for the new operating model, and maintain network connectivity to excel in your career.