History of private equity and venture capital

1980s buyout boomHistory of venture capitalLBO boom
The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century.wikipedia
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Venture capital

venture capitalistventure capitalistsventure capital firm
The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel, although interrelated tracks.
(History of venture capital)

Private equity

private-equityequityPrivate equity investor
The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel, although interrelated tracks.
History of private equity and venture capital

Security (finance)

securitiessecuritydebt securities
US investment banks were confined primarily to advisory businesses, handling mergers and acquisitions transactions and placements of equity and debt securities.
History of private equity and venture capital

Georges Doriot

G. F. DoriotGeorges F. Doriot
ARDC was founded by Georges Doriot, the "father of venture capitalism" (founder of INSEAD and former dean of Harvard Business School), with Ralph Flanders and Karl Compton (former president of MIT), to encourage private sector investments in businesses run by soldiers who were returning from World War II.
History of private equity and venture capital

American Research and Development Corporation

American Research & Development
It was not until after World War II that what is considered today to be true private equity investments began to emerge marked by the founding of the first two venture capital firms in 1946: American Research and Development Corporation.
History of private equity and venture capital

Private equity fund

private equity fundsprivate equityBuyout fund
J.H. Whitney & Company continues to make investments in leveraged buyout transactions and raised $750 million for its sixth institutional private equity fund in 2005. In 1982, Venture Capital Fund of America, the first private equity firm focused on acquiring secondary market interests in existing private equity funds was founded and then, two years later in 1984, First Reserve Corporation, the first private equity firm focused on the energy sector, was founded.
History of private equity and venture capital

Private equity firm

private equity firmsprivate equity groupprivate equity
Private equity firms organized limited partnerships to hold investments in which the investment professionals served as general partner and the investors, who were passive limited partners, put up the capital.
History of private equity and venture capital

Jerome Kohlberg Jr.

Jerome Kohlberg
The industry that is today described as private equity was conceived by a number of corporate financiers, most notably Jerome Kohlberg, Jr. and later his protégé, Henry Kravis.
History of private equity and venture capital

Henry Kravis

Henry R. KravisHenryHenry Kravis’s
The industry that is today described as private equity was conceived by a number of corporate financiers, most notably Jerome Kohlberg, Jr. and later his protégé, Henry Kravis.
History of private equity and venture capital

List of private equity firms

50 largest private equity firmslargest private equity firmsprivate equity
Lee's firm, Thomas H. Lee Partners, while initially generating less fanfare than other entrants in the 1980s, would emerge as one of the largest private equity firms globally by the end of the 1990s.
History of private equity and venture capital

Private equity secondary market

secondary marketSecondary investmentsSecondaries
In 1982, Venture Capital Fund of America, the first private equity firm focused on acquiring secondary market interests in existing private equity funds was founded and then, two years later in 1984, First Reserve Corporation, the first private equity firm focused on the energy sector, was founded.
History of private equity and venture capital

Kohlberg & Company

Kohlberg & Co.Kohlberg Capital CorpKCAP Financial, Inc
Instead, Kohlberg chose to return to his roots, acquiring smaller, middle-market companies and in 1987, he would found a new private equity firm Kohlberg & Company along with his son James A. Kohlberg, at the time a KKR executive.
*History of private equity and venture capital

The Blackstone Group

BlackstoneBlackstone GroupBlackstone's GSO Capital Partners
The third boom and bust cycle (from 2003 through 2007) came in the wake of the collapse of the Dot-com bubble—leveraged buyouts reach unparalleled size and the institutionalization of private equity firms is exemplified by the Blackstone Group's 2007 initial public offering.
In 1991, with the collapse of the 1980s buyout boom, Blackstone began to offer advisory services in corporate restructurings as well.

Leveraged buyout

leveraged buyoutsLBOleveraged finance
Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel, although interrelated tracks. The first boom and bust cycle, from 1982 through 1993, was characterized by the dramatic surge in leveraged buyout activity financed by junk bonds and culminating in the massive buyout of RJR Nabisco before the near collapse of the leveraged buyout industry in the late 1980s and early 1990s.
History of private equity and venture capital

Mezzanine capital

mezzanine debtmezzaninemezzanine financing
In April 2004, Apollo raised $930 million for a listed business development company, Apollo Investment Corporation (NASDAQ: AINV), to invest primarily in middle-market companies in the form of mezzanine debt and senior secured loans, as well as by making direct equity investments in
History of private equity and venture capital

Business Development Company

BDCBusiness Development Companiesbusiness development at the company
In April 2004, Apollo raised $930 million for a listed business development company, Apollo Investment Corporation (NASDAQ: AINV), to invest primarily in middle-market companies in the form of mezzanine debt and senior secured loans, as well as by making direct equity investments in
History of private equity and venture capital

Asset classes

asset class
The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century.

RJR Nabisco

Nabisco Holdings Corp.R.J.R. Nabisco
The first boom and bust cycle, from 1982 through 1993, was characterized by the dramatic surge in leveraged buyout activity financed by junk bonds and culminating in the massive buyout of RJR Nabisco before the near collapse of the leveraged buyout industry in the late 1980s and early 1990s.

Invest Europe

European private equity
With the second private equity boom in the mid-1990s and liberalization of regulation for institutional investors in Europe, a mature European private equity market emerged.

Crédit Mobilier

Credit MobilierFrench bank of the same name
Merchant bankers in London and Paris financed industrial concerns in the 1850s; most notably Crédit Mobilier, founded in 1854 by Jacob and Isaac Pereire, who together with New York-based Jay Cooke financed the United States Transcontinental Railroad.

Jay Cooke

CookeCooke, JayJay Cooke & Co.
Merchant bankers in London and Paris financed industrial concerns in the 1850s; most notably Crédit Mobilier, founded in 1854 by Jacob and Isaac Pereire, who together with New York-based Jay Cooke financed the United States Transcontinental Railroad.

Transcontinental railroad

transcontinentaltranscontinental railwaytranscontinental rail line
Merchant bankers in London and Paris financed industrial concerns in the 1850s; most notably Crédit Mobilier, founded in 1854 by Jacob and Isaac Pereire, who together with New York-based Jay Cooke financed the United States Transcontinental Railroad.

J. P. Morgan

J.P. MorganJ. Pierpont MorganJohn Pierpont Morgan
Later, J. Pierpont Morgan's J.P. Morgan & Co. would finance railroads and other industrial companies throughout the United States. In certain respects, J. Pierpont Morgan's 1901 acquisition of Carnegie Steel Company from Andrew Carnegie and Henry Phipps for $480 million represents the first true major buyout as they are thought of today.

J.P. Morgan & Co.

J.P. MorganGuaranty Trust CompanyJP Morgan
Later, J. Pierpont Morgan's J.P. Morgan & Co. would finance railroads and other industrial companies throughout the United States.

Carnegie Steel Company

Carnegie SteelCarnegieCarnegie-Illinois Steel Company
In certain respects, J. Pierpont Morgan's 1901 acquisition of Carnegie Steel Company from Andrew Carnegie and Henry Phipps for $480 million represents the first true major buyout as they are thought of today.