Top private equity firms: analysis, insights, and trends

Private equity allows investors to put money directly into companies and play a major role in shaping how they grow.

This influence can help businesses to make smarter choices, enabling them to become more ethical, sustainable, and successful in the long term.

Some of the largest private equity (PE) firms in the world, such as KKR, Blackstone, and Thoma Bravo, manage hundreds of billions of dollars in assets and have a track record of transforming businesses across sectors like technology, healthcare, finance, and industrials.

Understanding PE companies

PE is a form of investment in which investors put money into private companies or take public companies private, usually with the goal of improving the performance of the firms they invest in, growing their value, and eventually selling them for a profit.

What defines a PE company?

PE firms raise money from investors (called limited partners) and pool the proceeds into a fund.

The firm then uses this fund to build a portfolio of companies, with the goal of increasing their value over the medium to long term through strategic, financial, and operational improvements, and eventually exit via a sale, merger, or IPO to generate a return.

Investments can be carried out via:

1. Buyouts: Buying a controlling stake in a business
2. Growth Capital: Investing in firms to support their growth
3. Venture Capital: Investing in promising start-ups, early-stage, and emerging firms.

The lifecycle of a PE investment

According to KKR, conventional private equity funds require investors to make financial commitments for the fund's 10- to 12-year lifespan.

Here’s what the lifecycle of a PE investment looks like in a nutshell

1. Fundraising period:

1. Define the fund strategy
2. Establish the investment structures
3. Collect early capital in stages

2. Investment period:

1. Sourcing and assessing opportunities
2. The fund invests in companies that fit its strategy (buyout, growth, etc.)
3. Managers help portfolio companies to grow, improve efficiency, and increase value
4. Monitoring and reporting.

3. Harvesting returns (or Exit) period:

1. Investments are sold (via IPOs, strategic sales, or secondary sales)
2. Returns are distributed to investors
3. The fund winds down, and legal closure occurs.

The role of PE in financial markets

As part of the larger alternative investment landscape, PE has a variety of functions in financial markets.

The table below shows how PE interacts with the financial market

The largest PE companies in the world

Based on figures from Private Equity International, the 300 investment firms that make up the 2025 PEI 300 rating generated US$3.29 trillion during the previous five years, which represents a 0.37% increase compared to the data from last year.

The PEI 300 analyzes the five-year fundraising totals of the largest PE firms (January 1st, 2020 - December 31st, 2024).

* The 2025 data presented in the PEI 300 ranking was created based on the amount of PE direct investment capital collected from third-party investors, along with capital gathered for funds in the market at the end of the counting period.

Investment focus areas of the largest PE companies

Here’s a brief description of each company’s overall investment focus

We will now provide a short overview of each company.

1. KKR

Raised US$117.9 billion in 2020-2024

Established in 1976 at 30 Hudson Yards, Manhattan, New York, KKR, formerly known as Kohlberg Kravis Roberts, is the biggest PE and investment company based on the five-year fundraising totals.

Specialization

It focuses on long-term value creation and operational shifts within a variety of industries, such as technology, infrastructure, and real-estate.

Notable deals

In 1988, the firm engaged in the leveraged buyout (LBO) of RJR Nabisco which, at a value of US$25 billion, was considered the biggest buyout ever until beaten by another deal in 2005 (17 years later).

2. EQT

Raised US$113 billion in 2020-2024

EQT is a global investment company established in 1994 in Stockholm, Sweden that, along with its associates, then expanded its presence in other European cities (Amsterdam, Berlin, London, Madrid), in Asia (Hong Kong, Mumbai, Seoul, Shanghai, Tokyo), and the United States (New York City, San Francisco).

Specialization

It invests in high-quality companies within several industries, including healthcare, technology, industrial technology, and services.

Notable deals

One of the company’s notable deals includes the acquisition of Nord Anglia Education for US$14.5 billion (including debt), with the main participants being a group of investors led by Neuberger Berman, EQT, and the Canada Pension Plan Investment Board (CPP Investments). Nord Anglia is among the largest private school operators globally, operating over 80 schools in 33 nations.

3. Blackstone

Raised US$95.7 billion in 2020-2024

Originally established in 1985 with headquarters in New York City, Blackstone now has offices in London, Hong Kong, Beijing, and Dubai.

Specialization

Blackstone looks to invest in infrastructure, life sciences, growth equity, PE, public debt, and real estate. It also invests in AI-driven business services and software and is one of the largest secondary investors.

Notable deals

One of Blackstone's most notable deals was the 2007 acquisition of Equity Office Properties Trust for about US$39 billion (including debt) – the largest leveraged buyout at that time.

4. Thoma Bravo

Raised US$88.2 billion

Founded in 1980 in Chicago, Illinois, Thoma Bravo now has offices in Dallas, London, Miami, New York, and San Francisco.

Specialization

The firm specializes in acquiring enterprise software companies, with a strategic focus on high-growth sectors like cybersecurity, SaaS, and fintech.

Notable deals

One of the firm’s notable transactions was the acquisition of Darktrace, a high-profile global cybersecurity AI leader, for US$5.3 billion in 2024.

5. TPG

Raised US$72.6 billion in 2020-2024

TPG, a Fort Worth, Texas-based PE company with offices in San Francisco and across 13 countries worldwide, began operations in 1992.

Specialization

It focuses on investing in businesses involved in the consumer, healthcare, business services, digital media and communications, and enterprise technology sectors.

Notable deals

One of its deals included the buyout of Continental Airlines (1993) and the leveraged buyout of Burger King in 2002, with Bain Capital and Goldman Sachs Capital Partners.

6. CVC Capital Partners

Raised US$72.5 billion in 2020-2024

The company was set up in 1981 with its headquarters in Luxembourg. It is a global private equity firm with 30 offices around the globe and a portfolio of over 140 companies.

Specialization

The firm invests across a broad range of sectors, including healthcare, financial services, chemicals, consumer and retail, sports, media and entertainment, technology, manufacturing, and business services.

Its focus spans Europe, the Americas, and Asia, and it focuses on buyouts, growth equity, and strategic investment opportunities.

Notable deals

The firm’s largest deal to date was the closing of their ninth Europe/Americas private equity fund, CVC Capital Partners IX, at 26 billion Euros (~US$29 billion), which closed in July 2023 and, according to Private Equity International, was the largest PE buyout fund ever raised.

7. Hg

Raised US$72.5 billion in 2020-2024

Founded in 2000 in London, the company now has offices in Munich, New York, Paris, and San Francisco. It focuses on investing in software and service companies across Europe.

Specialization

Hg invests across multiple sectors, including automation and engineering, healthcare, insurance, technology services, and fintech.

Notable deals

One of its largest deals was the US$12.2 billion buyout of Visma, a Norwegian software developer that provides business software such as supplies, accounting, payroll, and HR to over a million small customers.

8. Hellman & Friedman (H&F)

Raised US$50.2 billion in 2020-2024

Founded in 1984 and headquartered in San Francisco, Hellman & Friedman is a leading PE company with further offices in New York and London.

Specialization

H&F invests across a wide range of sectors, including consumer services, retail, energy, industrials, financial services, technology, business services, healthcare, and insurance services, throughout the US.

Notable deal

One of H&F’s notable deals was the 2021 acquisition of Medline Industries for about US$34 billion in a consortium with Blackstone and Carlyle.

9. Clayton, Dubilier & Rice (CD&R)

Raised US$49.8 billion in 2020-2024

This PE company, one of the world’s oldest, was established by Gene Clayton, Marty Dubilier, and Joe Rice in 1978 in New York City, where its headquarters are still located.

Specialization

It focuses on investing in firms throughout North America and Europe and in different industries such as financial services, retail, healthcare, and technology.

Notable deals

In 2005, the company led a consortium that bought The Hertz Corporation from Ford Motor Company in a deal estimated at US$15 billion, which then became the second-largest PE buyout at the time. The consortium also featured The Carlyle Group and Merrill Lynch Global Private Equity.

10. Insight Partners

Raised US$48.2 billion in 2020-2024

This company’s roots go back to 1995, when the company was founded in New York. Today, Insight Partners is a global venture capital and PE firm that focuses on scaling high-growth technology companies.

Specialization

The company invests across a wide range of sectors, including AI and machine learning, government technology, SaaS, cybersecurity, fintech, gaming, and enterprise IT management. Its portfolio spans North America, Europe, Asia, and Africa.

Notable deals

One of Insight Partners’ largest single deals was the acquisition of Veeam, a Swiss IT start-up, valued at US$5 billion.

Advantages and risks of investing in PE funds

According to SmartAsset, a U.S.-based financial technology company, there are several pros and cons when investing in PE firms that are worth highlighting.

Advantages

1. High return potential

When targeting companies with strong growth, returns from these investments often outpace those from conventional public market investments.

2. Diversification

By making investments in private enterprises, investors can distribute the risk of their portfolio among a variety of asset classes, industries, and regions.

3. Exclusive opportunities

PE investments provide access to potential investments that are not offered by public markets, including start-ups, early-stage, and transforming businesses.

4. Long-term focus

Because PE investments are usually kept for many years, this gives enterprises time to grow and improve without being concerned about short-term stock market pressure, which means they can focus on long-term goals.

Disadvantages and risks

1. High risk

PE’s lack of regulation and transparency has the potential to lead to unexpected problems. Furthermore, investments' performance often relies on the capacity to implement tactical changes, which are not always successful.

2. Illiquidity

Capital is locked up for years, which prevents investors from accessing their funds should they need to.

3. Long horizon

PE investments typically involve an investment horizon of 5-10 years before exit, which may not suit investors who are looking for shorter cycles of investment, or who want access to liquidity in a shorter timescale.

4. High fees

Management and performance fees reduce net returns and have the potential to lower the total return drastically.

5. Complexity

PE investment demands in-depth due diligence and expertise, which individual investors may find too complex and time-consuming.

Although investing in PE has its own risks, there are also significant benefits that could improve an investment portfolio, ranging from high returns and diversification to access to special opportunities.

The future of PE: trends and challenges

PE equity activity has increased this year compared to 2024, although many portfolio companies remain unsold, fundraising is tough (with money mainly going to the best companies), and uncertainty in policy is holding back further dealmaking, according to PwC.

As a result, PE companies are holding record levels of unspent capital committed by investors, called dry powder, creating pressure to deploy funds effectively while navigating market uncertainties.

Current challenges

PE companies are grappling with several key issues:

1. Underperforming returns: 28% of limited partners report that investment performance has fallen below expectations, according to PwC.
2. Macroeconomic risks: 70% of executives surveyed in PwC's Pulse Survey indicated that their companies face moderate to major risks from an uncertain macroeconomic environment.

These difficulties show how important it is to adjust to a changing economic environment.

Future outlook

Looking ahead, PE companies will aim to attract more investors and expand their assets under management. To achieve this, many are diversifying their strategies and searching for new ways to remain competitive.

Diversification strategies

PE companies are branching out in several ways:

1. Broadening their investor base by opening opportunities to individual investors beyond traditional institutional limited partners
2. Targeting new industries by investing in portfolio companies from sectors outside their historical focus
3. Expanding into areas such as private credit, secondary funds, and infrastructure funds.

Operational improvements needed

Due to the fact that PE companies seek diversification, this involves greater operational complexity, which means they must improve their internal capabilities. Some of the key areas for improvement include:

1. Financial planning and analysis
2. Investor relations
3. Payroll, HR, and reporting systems
4. Tax and compliance models.