Private equity firm

private equity firmsprivate equity groupprivate equitybuyout firmprivate equity companyequity firmgeneral partnersprivate equity investment firmequity investment firmfund manager
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.wikipedia
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Private equity

private-equityequityPrivate equity investor
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.
A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor.

Financial sponsor

financial buyerfinancial sponsor coverageprivate-equity firm
Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies.
A financial sponsor is a private equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions.

Private equity fund

private equity fundsprivate equityBuyout fund
Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies. Private equity firms will receive a periodic management fee as well as a share in the profits earned (carried interest) from each private equity fund managed. Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions.
A private equity fund is raised and managed by investment professionals of a specific private equity firm (the general partner and investment advisor).

Venture capital

venture capitalistventure capitalistsventure capital firm
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.
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.

Carried interest

carry
Private equity firms will receive a periodic management fee as well as a share in the profits earned (carried interest) from each private equity fund managed.
Notable examples of private equity firms with carried interest of 25% to 30% include Bain Capital and Providence Equity Partners.

Management fee

base feefees
Private equity firms will receive a periodic management fee as well as a share in the profits earned (carried interest) from each private equity fund managed.
In a private equity fund, the management fee is an annual payment made by the limited partners in the fund to the fund's manager (e.g., the private equity firm) to pay for the private equity firm's investment operations.

Sycamore Partners

According to an updated 2008 ranking created by industry magazine Private Equity International (The PEI 50), the largest private equity firms include The Carlyle Group, Kohlberg Kravis Roberts, Goldman Sachs Principal Investment Group, The Blackstone Group, Bain Capital, Sycamore Partners and TPG Capital.
Sycamore Partners is a private equity firm based in New York specializing in investments through a variety of private equity strategies, most notably leveraged buyouts, distressed buyouts, complex corporate carveouts and debt investments.

AlpInvest Partners

NIB Capital
Among the largest firms in that ranking were AlpInvest Partners, Ardian (formerly AXA Private Equity), AIG Investments, Goldman Sachs Private Equity Group, and Pantheon Ventures.
As of the end of 2017, the firm had invested in more than 600 private equity funds managed by more than 300 private equity firms.

History of private equity and venture capital

1980s buyout boomHistory of venture capitalLBO boom
History of private equity and venture capital
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.

Kohlberg Kravis Roberts

KKRKohlberg Kravis Roberts & Co.KKR & Co.
According to an updated 2008 ranking created by industry magazine Private Equity International (The PEI 50), the largest private equity firms include The Carlyle Group, Kohlberg Kravis Roberts, Goldman Sachs Principal Investment Group, The Blackstone Group, Bain Capital, Sycamore Partners and TPG Capital.
KKR had previously listed its KPE vehicle in 2006, but for the first time, KKR would offer investors an ownership interest in the management company itself.

List of private equity firms

50 largest private equity firmslargest private equity firmsprivate equity
According to an updated 2008 ranking created by industry magazine Private Equity International (The PEI 50), the largest private equity firms include The Carlyle Group, Kohlberg Kravis Roberts, Goldman Sachs Principal Investment Group, The Blackstone Group, Bain Capital, Sycamore Partners and TPG Capital.
Private equity firm

The Carlyle Group

Carlyle GroupCarlyleBlack Sea Oil and Gas
According to an updated 2008 ranking created by industry magazine Private Equity International (The PEI 50), the largest private equity firms include The Carlyle Group, Kohlberg Kravis Roberts, Goldman Sachs Principal Investment Group, The Blackstone Group, Bain Capital, Sycamore Partners and TPG Capital.
The Carlyle Group is an American multinational private equity, alternative asset management and financial services corporation.

The Blackstone Group

BlackstoneBlackstone GroupBlackstone's GSO Capital Partners
According to an updated 2008 ranking created by industry magazine Private Equity International (The PEI 50), the largest private equity firms include The Carlyle Group, Kohlberg Kravis Roberts, Goldman Sachs Principal Investment Group, The Blackstone Group, Bain Capital, Sycamore Partners and TPG Capital.
In March 2018, the company's Strategic Capital Holdings Fund announced an investment in Kohlberg & Company, a private equity firm.

Investment management

portfolio managementasset managementinvestment manager
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.

Investor

financierinvestorsfinanciers
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.

Investment strategy

investment strategiesinvestment strategistmethods
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.

Leveraged buyout

leveraged buyoutsLBOleveraged finance
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.

Growth capital

growth equitygrowth capital firmeconomical growth
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.

Financial capital

capitalfinance capitalfinancial
Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions.

Equity (finance)

equityshareholders' equityequity capital
Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions.

Hedge fund

hedge fundshedge fund managerhedge-fund
Private equity firms and investment funds should not be confused with hedge fund firms which typically make shorter-term investments in securities and other more liquid assets within an industry sector but with less direct influence or control over the operations of a specific company.

Initial public offering

IPOwent publicpublic
an initial public offering (IPO) — shares of the company are offered to the public, typically providing a partial immediate realization to the financial sponsor as well as a public market into which it can later sell additional shares;

Mergers and acquisitions

mergermergedM&A
a merger or acquisition — the company is sold for either cash or shares in another company;

Takeover

hostile takeoveracquisitionAcquired
a merger or acquisition — the company is sold for either cash or shares in another company;

Recapitalization

recapitalisationrecapitalizationsrecapitalized
a recapitalization — cash is distributed to the shareholders (in this case the financial sponsor) and its private equity funds either from cash flow generated by the company or through raising debt or other securities to fund the distribution.