Private equity is a form of alternative investment that involves buying and selling stakes in private companies or assets, such as real estate, infrastructure, or natural resources. Private equity firms typically use a combination of their own capital and borrowed funds to acquire and improve the performance of their portfolio companies, with the aim of generating high returns for their investors.
The private equity industry is one of the most influential and lucrative sectors in the global financial market, as it provides access to capital, expertise, and networks for businesses that are not publicly traded or are undervalued by the public market. The private equity industry also plays a vital role in driving innovation, growth, and transformation across various industries and regions.
According to a recent report by Preqin, the global private equity industry had a total of $4.5 trillion in assets under management as of June 2022, representing a 13% increase from the previous year. The report also reveals some of the key trends and developments that are shaping the private equity industry in 2023, are rise of megafunds, shift to technology, and focus on ESG
In this blog post, we will explore some of the top private equity firms by total equity in 2023, based on their latest available data from Preqin. a leading source of information for the alternative assets industry. Total equity is the amount of equity capital that a private equity firm has available for new investments, also known as dry powder. Here are the top 10 private equity firms by total equity in 2023:
1. Blackstone Inc.
Founded in 1985 and headquartered in New York City, Blackstone is the world’s largest private equity firm by total equity, with $125.6 billion as of June 2022. Blackstone invests across a broad range of sectors, such as energy, retail, and technology, and also has significant holdings in real estate, credit, and hedge fund solutions. Some of its portfolio companies include Refinitiv, Ancestry, and Bumble.
2. KKR & Co. Inc.
Founded in 1976 and headquartered in New York City, KKR is the second-largest private equity firm by total equity, with $103.7 billion as of June 2022. KKR is known for its expertise in leveraged buyouts, which are still one of its core strategies. KKR also invests in growth equity, infrastructure, real estate, and credit. Some of its portfolio companies include Fiserv, Optiv, and PetVet.
3. EQT Partners
Founded in 1994 and headquartered in Stockholm, EQT is the third-largest private equity firm by total equity, with $101.7 billion as of June 2022. EQT focuses on investing in companies that have strong growth potential and positive social and environmental impact. EQT also has a diversified portfolio of investments across sectors such as healthcare, technology, and consumer. Some of its portfolio companies include Anticimex, SUSE, and IVC Evidensia.
4. Thoma Bravo
Founded in 1980 and headquartered in Chicago, Thoma Bravo is the fourth-largest private equity firm by total equity, with $74.1 billion as of June 2022. Thoma Bravo specializes in investing in software and technology-enabled services companies that have strong market positions and growth opportunities. Thoma Bravo also applies a buy-and-build strategy to create value for its portfolio companies. Some of its portfolio companies include Sophos, Instructure, and Veracode.
5. CVC Capital Partners
Founded in 1981 and headquartered in Luxembourg, CVC Capital Partners is the fifth-largest private equity firm by total equity, with $69.8 billion as of June 2022. CVC Capital Partners invests in companies that have leading market positions and strong cash flows across various sectors such as consumer goods.
6. Advent International
Advent International is a leading global private equity firm that has been investing in growth-oriented companies for over 35 years. Advent International has a presence in 16 countries across North America, Europe, Latin America, and Asia, and manages over $66 billion in assets. Advent International focuses on five core sectors: business and financial services, healthcare, industrial, retail and consumer, and technology.
7. Bain Capital
Bain Capital is one of the world’s largest and most diversified private investment firms that offers a range of investment strategies across various asset classes. Bain Capital was founded in 1984 by former members of the management consulting firm Bain & Company, and has since grown to manage over $65 billion in assets. Bain Capital invests in companies that have strong potential for growth and transformation across various industries and regions. Bain Capital also leverages its operational expertise and global network to help its portfolio companies achieve their full potential.
8. TPG Capital
TPG Capital is a global alternative asset firm that invests in a wide range of asset classes, such as private equity, growth equity, real estate, credit, and public equity. TPG Capital was founded in 1992 by David Bonderman and James Coulter, who pioneered the concept of thematic investing. TPG Capital manages over $64 billion in assets and has offices in 12 countries. TPG Capital also has a strong focus on impact investing through its TPG Rise platform, which aims to generate positive social and environmental outcomes alongside financial returns.
9. Carlyle Group
Carlyle Group is one of the world’s largest and most diversified global investment firms that operates across four segments: corporate private equity, real assets, global credit, and investment solutions. Carlyle Group was founded in 1987 by Daniel D’Aniello, William Conway Jr., and David Rubenstein, who envisioned a firm that would combine financial resources with intellectual capital. Carlyle Group manages over $62 billion in assets and has offices in 31 countries. Carlyle Group invests in companies that have attractive growth prospects and can benefit from its global network and industry expertise.
10. Warburg Pincus
Founded in 1966 by Lionel Pincus and John Vogelstein has headquarters in New York City. The company’s revenue in 2022 was $58.9 billion. Warburg Pincus is a global private equity firm that invests in a wide range of sectors, such as consumer, energy, financial services, healthcare, industrials, and technology. Warburg Pincus has a long-term and flexible approach to investing, and supports its portfolio companies with strategic guidance, operational expertise, and global network. Some of its portfolio companies include CrowdStrike, Gojek, and Trax.