What Are the Biggest U.S. PE Firms?
| Top U.S. Private Equity Firms | AUM |
|---|---|
| Blackstone | $1.0 trillion |
| Apollo | $598 billion |
| KKR | $510 billion |
| The Carlyle Group | $381 billion |
| Bain Capital | $165 billion |
| TPG Capital | $137 billion |
| Thoma Bravo | $127 billion |
| Silver Lake | $98 billion |
| Vista Equity Partners | $96 billion |
| Insight Partners | $90 billion |
Blackstone Inc.
AUM
$1.0 trillion
Headquarters
New York, N.Y.
Year Founded
1985
$1.0 trillion
New York, N.Y.
1985
Why We Picked It
Blackstone is the world’s largest alternative asset manager, founded in 1985 to focus on mergers and acquisitions by Lehman Brothers alumni Peter Peterson and Stephen Schwarzman.
The firm serves institutions and individuals, working on a large scale that enables them to invest in dynamic sectors with strong potential for long-term growth. Blackstone, with more than 12,000 real estate assets and over 230 portfolio companies, deploys capital into investments that they are convinced will deliver long-term value for clients.
Blackstone has been one of the largest investors in leveraged buyouts over the past three decades, and the company is active in credit, infrastructure, hedge funds, insurance, secondaries and growth equity.
Apollo Global Management, Inc.
AUM
$598 billion
Headquarters
New York, N.Y.
Year Founded
1990
$598 billion
New York, N.Y.
1990
Why We Picked It
Apollo Global Management is a leading global alternative investment manager with expertise in credit and real assets as well as private equity. The firm was founded in 1990, following the collapse of Drexel Burnham Lambert, by Leon Black, who had headed M & A at Drexel. He was joined by Josh Harris and Marc Rowan.
Apollo went public with an initial public offering on March 30, 2011, and is listed on the New York Stock Exchange with the ticker APO. The firm’s long-term IRR in private equity, 32 years since inception, is 39% gross and 24% net.
Kohlberg Kravis Roberts & Co.
AUM
$510 billion
Headquarters
New York, N.Y.
$510 billion
New York, N.Y.
1976
Why We Picked It
Kohlberg Kravis Roberts & Co., commonly known as KKR, was founded by Henry Kravis and George Roberts in 1976. Today the firm is a world leader in private equity, investing capital for long-term appreciation through either controlling ownership of portfolio companies or strategic minority positions in industry-leading franchises.
KKR was a pioneer in the field of leveraged buyouts, and famed for the 1988 LBO of RJR Nabisco, a transaction made famous in the book and film “Barbarians at the Gate.” KKR went public in March 2010, listing on the NYSE under the ticker KKR.
The Carlyle Group
AUM
$381 billion
Headquarters
Washington, D.C.
Year Founded
1987
$381 billion
Washington, D.C.
1987
Why We Picked It
The Carlyle Group was founded in 1987 by Bill Conway, Dan D’Aniello and David Rubenstein. Today the company manages $381 billion, investing in companies, credit and investment solutions worldwide.
The firm combines global vision with local insight, relying on more than 2,200 professionals in 29 offices around the world. In May 2012, Carlyle completed a $700 million IPO and began trading on the Nasdaq stock exchange under the ticker CG.
Bain Capital LP
AUM
$165 billion
Headquarters
Boston, Mass
Year Founded
1984
$165 billion
Boston, Mass
1984
Why We Picked It
Bain Capital was founded in 1984 by partners from Bain & Company, a market leading consulting firm. Bain Capital invests in private equity and venture capital as well as credit, public equities, life sciences, crypto, tech, special situations and real estate.
The firm invests globally across sectors and geographic regions, working with portfolio companies to help them achieve their full potential. Working with start-ups, founder-led companies, turnarounds, carve-outs and others, Bain strives to deliver strong returns over the long term.
TPG Capital
AUM
$137 billion
Headquarters
Fort Worth, Texas
Year Founded
1992
$137 billion
Fort Worth, Texas
1992
Why We Picked It
TPG was founded in 1992 by David Bonderman, James Coulter and William Price III. Focusing on leveraged buyouts and growth capital, the firm manages funds across growth capital, venture capital, public equity and debt.
With an emphasis on innovation, TPG seeks to drive long-term value by organizing their investment teams around sectors, including healthcare, software & enterprise technology (SET), internet, digital media & communications (IDMC), consumer and business services.
Thoma Bravo LP
AUM
$127 billion
Headquarters
Chicago, Ill.
Year Founded
1980
$127 billion
Chicago, Ill.
1980
Why We Picked It
Thoma Bravo is the successor firm to Thoma & Co, founded in 1980 by Carl Thoma and Stanley Golder. Today the firm is led by its managing partners, which include Carl Thoma and Orlando Bravo, and it is one of the world’s most prolific acquirers of software companies.
In 2019, a study conducted by HEC Paris and Dow Jones named the firm the world’s best-performing buyout investor. With a predominantly tech focus, the firm invests in application, infrastructure and cybersecurity software as well as technology-enabled business sectors. They also invest in healthcare and financial services. Today they have 75 portfolio companies and have realized 75 investments.
Silver Lake
AUM
$98 billion
Headquarters
Menlo Park, Calif.
Year Founded
1999
$98 billion
Menlo Park, Calif.
1999
Why We Picked It
Silver Lake was founded in 1999, at the height of the technology boom, by Jim Davidson, David Roux, Roger McNamee and Glen Hutchins to invest in mature technology companies.
Today the firm is one of the leading global investors in technology companies, seeking out opportunities in technology, technology-enabled and related sectors. The firm’s portfolio companies collectively generate more than $276 billion annually and employ more than 710,000 people around the globe.
Vista Equity Partners
AUM
$96 billion
Headquarters
Austin, Texas
Year Founded
2000
$96 billion
Austin, Texas
2000
Why We Picked It
Vista Equity Partners was founded in 2000 by Robert Smith, who continues to serve as chairman and CEO today. The firm has invested in enterprise software since its inception, pioneering a sector-focused approach to private equity.
Vista invests in enterprise software companies that range from emerging and lower middle market organizations to large-cap firms, partnering with portfolio companies at every stage in the life-cycle to maximize future opportunities. Currently Vista has more than 80 portfolio companies and has been involved in more than 590 transactions since inception.
Insight Partners
AUM
$90 billion
Headquarters
New York, N.Y.
Year Founded
1995
$90 billion
New York, N.Y.
1995
Why We Picked It
Insight Partners was founded in 1995 by Jeff Horing and Jerry Murdock, who believed that investing in software companies would offer significant opportunities for growth. The firm has invested in more than 600 companies around the world, with more than 55 conducting IPOs.
With more than 25 years of operating and investing in software, Vista offers the expertise to recognize industry patterns, emerging tech markets and software trends, and the company can help portfolio companies capture value and enjoy long-term success.
* AUM data sourced from company websites, current as of March 2023.
What Is a Private Equity Firm?
Private equity firms, commonly called PE firms, pool investor funds to invest in or acquire companies that are not publicly traded on a stock exchange.
Typically, they take controlling stakes in these portfolio companies and work with management to improve the businesses and make them more profitable. A private equity fund may also buy out a public company, take it private and restructure it for future growth.
Once the portfolio company is operating successfully, the private equity firm exits the investment by taking the portfolio company public or selling it.
How to Invest in Private Equity Firms
Private equity investments are largely unregulated by the Securities and Exchange Commission (SEC) since they are not traded in the public markets.
However, since the passage of the Dodd-Frank Act in 2010, large PE firms are required to provide some information about their businesses to the regulators. Nonetheless, investment opportunities for retail investors are very limited.
Private equity is part of a larger asset class called alternative investments, and investment in alternatives has typically been limited to institutions and persons deemed accredited investors by the SEC.
There are several ways to qualify as an accredited investor. Have an annual income of $200,000—$300,000 for a couple—for the past two years, maintain a net worth of $1 million dollars or more, or demonstrate “defined measures of professional knowledge, experience, or certifications” acceptable to the SEC.
Private equity firms are looking for new sources of investment as the industry matures. A recent study by Bain and Company reported that individual investors hold roughly 50% of the estimated $275 trillion to $295 trillion of assets under management globally. However, those investors are responsible for only 16% of assets under management held by alternative investment funds.
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