There are a number of controversies attached with private equity companies and they are found to be functioning on vulture capitalism. It is not a true thing for the majority of the popular and developed companies but the modus operandi of these private equity companies to some extend is that those gain huge profits that are rich investors whereas the working class and employees are suffering due to restructuring which is actually downsizing. Furthermore, the majority of the time, such investments are made by private equity firms that pay off huge profits and returns in the short-run, and in the case when the company takes an exit from the particular organization it soon starts to crumble down and face bankruptcy and losses. However, some difference is present amongst investment companies and private equity firms. I have read the post on Yahoo by Insider monkey in which they shared about Largest Private Equity Firms and stated that:
“The Wall Street Journal carried out a survey on a renowned private equity firm called “Bain” in which it found out that 22% of the organizations that Bain invested in either filed for bankruptcy or shut down within eight years of Bain’s exit. However, there are almost as many success stories as there is evidence of failure and thus private equity firms are still more than relevant in the business arena. Perhaps the time and development stage in which the organization is, is extremely crucial in determining whether going for a leveraged buyout through a private equity firm is a great idea or not.”
We are going to start the list now. The first one is the American private equity company, EnCap Investments, which was started in 1988. The expertise of the company lies in the gas and oil sector and has made the majority of investments in midstream and upstream gas and oil companies. The company has made around 240 transactions of around $22 billion in a total of 33 years of its operations. This company is the leading venture capital firm in the energy sector of the US and has a proven record of gaining high investment returns along with reducing losses. The 2nd company is Leonard Green and Partners which was established in 1989 in Los Angeles. The company has a specialty in private equity investments and has one so far 100 above transactions with different clients from various fields and industries. Although, the company has less number of transactions as compared to other companies but still the company has raised a huge quantity of private equity capital.
There are some other companies in the list as well. Do you want to read more? Just head to 15 Biggest Private Equity Firms In The World.
