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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 by 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 reduce risk. Most firms specialize in one or more industries or investment strategies where they have particular expertise.
Here are 10 of the top private equity firms, ranked by funds raised from Jan. 1, 2019 to Dec. 31, 2023.
Key Takeaways
- Private equity is an alternative form of private financing, occurring away from public markets, in which funds and investors directly invest in companies or engage in buyouts of such companies.
- Private equity investments are typically available only to HNWIs.
- Private equity can take on various forms, from complex leveraged buyouts to venture capital.
1. The Blackstone Group Inc.
The Blackstone Group Inc. (BX) was founded in 1985 and is based in New York, with offices in London, Hong Kong, Beijing, and Dubai.
The company invests across a broad range of market sectors, including energy, retail, and technology. While private equity is its largest category of investments, Blackstone also has hundreds of billions of dollars in holdings in real estate, credit, and hedge funds.
2. KKR & Co. Inc.
KKR & Co. Inc. (KKR), formerly Kohlberg Kravis Roberts & Co., was founded in 1976 and is based in New York. KKR is known for being one of the first firms to engage in large-scale leveraged buyouts.
Among the firm’s noteworthy transactions are its 1989 leveraged buyout of RJR Nabisco and its 2007 buyout of TXU, the largest leveraged buyout on record. As of May 2025, among its portfolio holdings are 1-800 Contacts and DoorDash, Inc.
3. EQT AB
Based in Sweden, EQT A.B. (EQT.ST) was founded in 1994. The firm is spread across Europe, North America, and the Asia-Pacific regions, and has funds within private capital (leveraged buyout, growth, and venture) and real estate.
4. CVC Capital Partners
Founded in 1981, CVC Capital Partners has 30 offices worldwide. Its private equity portfolio includes more than 140 companies around the globe, including Authentic Brands Group and Lipton Teas and Infusions.
5. TPG Inc.
Founded in 1992 by David Bonderman and Jim Coulter, TPG Inc. (TPG) is based in Fort Worth, Texas. The company has 25 additional offices across 13 countries.
Among the firm’s noteworthy transactions are its buyout of Continental Airlines in 1993, its acquisition of Petco in 2000 (with Leonard Green and Partners), and its leveraged buyout (along with Bain Capital and Goldman Sachs Capital Partners) of Burger King in 2002. Among its holdings are Chobani, Fender, and Airbnb.
6. The Carlyle Group Inc.
The Carlyle Group Inc. (CG) was founded in 1987 and is based in Washington, D.C. With 2,300 professionals, notable holdings include Supreme and Orion.
7. Thoma Bravo
Thoma Bravo has more than 40 years of experience in providing capital and strategic support to experienced management teams and growing software and technology companies. Some of the companies in its portfolio include J.D. Power, Conga, and Anchorage Digital.
Fast Fact
Private equity firms provide financial backing to startups and companies that are not traded on public stock exchanges.
8. Advent International LP
Founded in 1984 by Peter Brooke and based in Boston, Advent International LP has over 300 employees across North America, Latin America, Europe, and Asia. The firm focuses its investments on five sectors: business and financial services, consumer and leisure, healthcare, industrial, retail, and technology.
9. Warburg Pincus LLC
Warburg Pincus LLC was established in 1966. Based in New York, it has offices in over 40 countries. Its funds have engaged with over 1,000 companies over time and more than 190 IPOs.
10. Hg
Formed in 2000 and based in London, Hg focuses on investments in software and service businesses in Europe. It also has offices in Munich, New York, Paris, and San Francisco, with a portfolio of over 50 businesses
How Do Private Equity Firms Produce Profits From Their Portfolio Companies?
Private equity firms typically create value through operational improvements, strategic repositioning, and financial engineering. They often bring in specialized management teams to optimize operations, cut costs, and drive revenue growth.
How Can Regular Investors Access Private Equity Investments?
While traditionally limited to institutional investors and ultra-HNWIs, regular investors now have several pathways to access private equity. The most accessible option is through exchange-traded funds (ETFs) that track publicly listed private equity companies, requiring no accreditation and minimal investment amounts. These ETFs offer exposure to publicly listed private equity firms.
Which Private Equity Firms Are Publicly Traded?
The Bottom Line
Professional investors at private equity firms raise a large fund (usually from affluent investors) and reinvest those funds to seek the biggest possible profits. The nature of the private equity industry is risky, as firms often engage in large acquisitions and controversial leveraged buyouts.
