Private equity firms in the middle market play an essential role in the investment scene as they bridge the gap between small businesses and large conglomerates. These entities usually target companies with a value between PS50 and PS500 million. They balance their deals, balance leverage, and focus on growth and operational improvements.
Middle-market private equity firms are known for their strategic approach. They have played a key role in driving change within their portfolios and often laid the foundation for significant value creation.
Private equity dynamics in the middle market are distinct. It is characterized by a focus on collaborations with management and deploying capital and industry expertise.
This sector is characterized by its adaptability, agility, and ability to cater to diverse industries. It has also been able to create success stories that are based on innovation and efficiency.
These firms are a powerful force in the private equity sector, and their presence demonstrates the importance of middle-market in private equity players to the economy as engines of progress and innovators.
What is the Private Equity Middle Market?
The private equity middle market is a segment of the industry that focuses on deals between $5 million and $1 billion. This market is further subdivided into three segments: lower-middle, mid-market, and upper-middle
Top Middle Market PE Firms
Middle-market private equity firms can combine agility with solid financial performance in a dynamic economic environment. Private equity firms that are known to be active in the mid-market include:
1. Carlyle Group
The Carlyle Group, a global investment company with deep industry knowledge and $325 billion of assets under management, is an expert in managing investments. Founded in Washington, D.C., in 1987, has grown its global presence, focusing on real estate, private credit, and private equity. The firm aims to foster corporate growth by structuring transformative deals and delivering value for investors, portfolio companies, and communities.
2. KKR & Co.
It’s headquartered in New York and founded in 1976, is a global leader in investment management with assets worth $252 billion. Invests in multiple asset classes, including hedge funds, private equity, energy, and infrastructure. They aims to generate attractive investment returns through a disciplined and patient approach. It also employs world-class employees and drives growth and value creation within its portfolio companies.
3. EQT
A global investment firm with over $73 billion raised in capital from 30+ active funds, is a unique organization. It’s headquartered in Stockholm, Sweden, invests globally in high-quality firms in industries such as healthcare and TMT (technology media telecommunications). Its goal is to drive growth and transformation by partnering with management teams and adopting an ownership mentality.
4. TPG Capital
It is a global leader in alternative assets, with offices in Fort Worth and San Francisco. It was founded in 1992. TPG has $72 billion of assets under management. These include private equity, growth capital, real estate, and public equity. TPG aims to create dynamic products and attractive options for investors while maintaining high operational excellence and discipline in its investment strategy.
5. Apollo Global Management
It is an alternative investment manager headquartered in New York. They has operated since 1990, and its assets have grown to $481 billion. The firm specializes in credit, tangible assets, and private equity strategies. It aims to offer investors attractive returns by using a variety of investment vehicles. Apollo is known as a value-oriented, contrarian investment firm in private equity. It also can invest in distressed assets.
6. The Blackstone Group Inc.
The Blackstone Group Inc., founded in 1985, has offices in New York, London, Hong Kong, and Beijing. It operates in Dubai. The company invests in various markets, including retail, energy, and technology. Blackstone’s largest investment category is private equity, but it holds hundreds of billions in holdings for real estate, hedge funds, credit, and other solutions. Blackstone’s portfolio includes financial markets data and infrastructure provider Refinitiv and digital family history service provider Ancestry and dating and social network apps owner and operator Bumble.
7. Thoma Bravo
Thoma Bravo is a software and technology company’s leading capital and strategic support provider. It has over 40 years of experience and $114 billion in AUM. McAfee Conga and Anchorage are some notable companies in its portfolio.
8. Neuberger Berman Group LLC
This is a company with $460 billion total AUM (including $70 billion private equity), has 648 professionals in investments in 25 countries worldwide. a company who has 25 years of experience in alternative investment, employs 648 professionals worldwide.
Conclusion
You have learned much about the leading private equity secondaries industry firms, the fundamentals of investing, and their impact on the global business landscape. These firms vary in their investment strategies, industry focuses, and geographic preferences, so it’s essential for companies seeking private equity investment to research and target the firms that align best with their needs and objectives. The Top Private Equity Firms for the Mid-Market were evaluated on five metrics: Commitment to the Mid-Market, Partnership Effectiveness, Financial Performance, Resources, and Social Impact. Read more such blogs.