An entrepreneur usually starts a business because they feel there is a market for their product or service. The unspoken goal is that the company will grow to the point that they need investors; and hopefully at some point there will be able to go public. Emerging companies will usually look to a private equity firm such as Effi Enterprises, which was founded by an expert in entrepreneurship, Efraim Landa.
An investment is typically made by a venture capital firm, an angel investor or a private equity firm. They all have different types of investment strategies but they provide companies working capital so that they can expand, develop new products or restructure the company on a management level. There are several private equity firms in the United States and a few of them have experienced much success in private equity to foster growth in emerging companies. Here are some brief overviews of some of the top private equity firms in the United States.
TPG Capital, L.P.
TPG Capital is not only one of the largest in the US, but in the world. The company was founded in 1992 by founding partners David Bonderman and James Coulter. They have headquarters in Fort Worth, Texas and San Francisco, California. It has stakes in a wide variety of industries including retail, health care, media and technology. The firm specializes in recapitalizations and leveraged buyouts but the company participates in many other investment strategies. They typically hold on to their investments for 5 to 7 years on average and are active in their holdings when needed. TPG has approximately $48 billion in assets. They have stakes in companies such as Neiman Marcus, SunGard Data Systems, Univision, Freescale Semiconductor and Avaya. The company’s affiliate, TPG Growth concentrates on growth equity and middle-market investments.
The Carlyle Group, L.P.
The Carlyle Group is another worldwide private investment firm. The company was founded in 1987 and went public in 2012. They have over 30 offices located around the world; headquarters are in Washington, D.C. They have made nearly 1000 investments since they were established. They participate in venture capital, leveraged finance opportunities, minority equity investments, real estate and management-led buyouts and specialize in industries such as consumer and retail, technology and business, and energy and power. They have also branched out into various other sectors such as health care, aerospace and defense, infrastructure and financial services.
Kohlberg Kravis Roberts & Co.(KKR)
This is possibly one of the most recognized names in finance and private equity. Their fame came from a scandal surrounding one of the most controversial buyouts ever. They participated in a $31 billion buyout/takeover of RJR Nabisco. The story was immortalized in a bestselling book and later a made for TV movie both entitled Barbarians at the Gate. Although KKR is competitive they are slightly behind many as far as size. They were established in 1976 and have participated in nearly 200 transactions which had a total value of nearly $424 billion.
The Blackstone Group L.P.
If you are talking about alternative asset management and private equity firms, it is certain that The Blackstone Group will be one of the primary topics. Their corporate office is located in New York, NY. Blackstone manages several investment strategies which include real estate funds, private equity funds and hedge funds. But the company also provides other types of financial counsel to their corporate clients as well as restructuring and mergers and acquisitions. Among their clientele are pensions both public and corporate, individuals and financial institutions. Co-founder Stephen Schwarzman also serves as Chairman, Alternative Asset Management, President and CEO of the private equity company.