Private equity firms manage investment capital obtained from institutional investors or high-net-worth individuals (HNWIs) to acquire equity ownership of companies through a variety of strategies, including leveraged buyouts and venture capital. Private equity firms operate with long-term investment horizons, typically five to seven years.
After obtaining an equity interest in a company, the private equity firm looks to eventually profit through either selling the company outright or through an initial public offering (IPO). When especially large investments are required, these firms often partner with other private equity firms to raise the necessary capital and to reduce their risk. Most firms specialize in one or more industries or investment strategies where they have particular expertise.
A report by Private Equity International (PEI) ranked the top 300 firms based on total private equity fundraising over the five-year period that ended on June 1, 2021.1 These are the top 10 private equity firms, according to that report.2 Readers should note that private equity assets under management (AUM) may be a subset of a company’s total AUM. We report private equity AUM in the list below where available.