Private equity is perhaps one of the most coveted fields that people are intrigued to know about. If you are also interested in having a peep into how private equity works and which are top players of this sector, this article is a must-read.
The Know-How of Private Equity
Private equity firms are known for managing investment capital gathered through institutional investors along with individuals with a high net worth in order to seize equity ownership of organizations through a range of strategies out of which the most famous ones are venture capital and leveraged buyout.
These firms function with long-term targets, usually from 5 to 7 years. After they have acquired a company’s equity interest, they seek ways to make profits by either selling or maybe through IPOs (initial public offerings). In case, there is a requirement to make some enormous investments, PE firms partner with similar companies of their realm in the pursuance of raising capital and lower down the risk exposure. Also. Most of the private equity companies have expertise in one and sometimes more industries.
Things to remember
• Private equity can be seen as another kind of private financing. In simpler terms, it is nowhere near public markets. It allows investors to make direct investments in companies and also engage in the buyout of these companies.
• PE investments are mostly available to just the high worth net people of the society.
• Private equity revolves around complex endeavors like venture capital and leveraged buyouts.
• The ranking of PE firms depends on the return on the investments made by investors along with the assets with management.
Top Private Equity Firms
1. Apollo Global Management LLC
Apollo Global Management LLC is number one on the list of the top private equity firms in the world. This company was founded by Leon Black, in the year 1990. Its headquarters are in New York City and the other locations where its branches are located in are Frankfurt, London, Los Angeles along with Singapore. The company’s management has private equity assets worth $150 billion.
2. Blackstone Group LP
The second company on the list is Blackstone Group LP. It was founded in the year 1985. Its headquarters is in New York with its other divisions in Hong Kong, London, Dubai, and Beijing. The company is known for investing in a wide array of market areas that include retail, technology, and energy. What makes this organization a biggie of the PE industry is the private equity assets worth $146 billion.
3. Carlyle Group
Next in the list is The Carlyle Group which operates in over thirty locations including Europe, North as well as South America, Asia, and the Middle East. This organization came into existence in 1987 and its headquarters is in Washington. The worth its private equity assets is $124 billion. Its present portfolio holdings comprise of CalPeak Power, Edgewood Partners Holdings LLC and the Bank of N.T. Butterfield & Son Ltd. at Bermuda.
About Niti Sharma
Niti Sharma is a professional writer, blogger who writes for a variety of online publications. She is also an acclaimed blogger outreach expert and content marketer. She loves writing blogs and promoting websites related to education, fashion, travel, health and technology sectors.