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Private Equity Firms Focus on Growing Their Portfolio Companies and Making Alternative Investments, Business and Industry Trends Analysis

There are myriad companies, both in the U.S. and abroad, that specialize in making private equity investments.  Industry leaders include Blackstone Group, Kohlberg Kravis Roberts (KKR), Texas Pacific Group (TPG), Thomas H. Lee Partners and Carlyle Group.  Globally, there are thousands of these firms in operation, but most of the money is held by a few top-tier companies.

Generally, these firms pool money from institutions, pension plans and wealthy individuals who are looking to make higher returns on their investments.  The fund managers use these pools to acquire controlling interests in companies of all types.  Significant amounts of leverage are typically employed so that a combination of debt and equity creates larger potential returns.  Such investments are often referred to as “leveraged buyouts” or “LBOs.” 

 


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