TPG tops list of 300 largest firms

According to the PEI 300, Private Equity International magazine’s proprietary ranking of the world’s largest private equity firms, the firm led by David Bonderman has raised more capital for private equity direct investment than any other firm over the past five years.

TPG is the largest private equity firm in the world, according to the PEI 300, Private Equity International magazine’s proprietary ranking of direct-investment programmes.

The firm unseats The Carlyle Group, which was ranked as the largest firm in 2007 and 2008.

The PEI 300 is an expansion of the PEI 50, the highly anticipated ranking of the largest 50 firms. The PEI 300 applies Private Equity International’s methodology to measure the largest 300 private equity firms globally.

A report on the PEI 300 is featured in the May issue of Private Equity International. A complete list of the 300 largest firms, as well as an executive summary of the PEI 300, is available at www.peimedia.com/pei300

The PEI 300 ranks firms based on the amount of private equity direct-investment capital they have raised or formed over a roughly five-year time period. It excludes other investment strategies, such as real estate and hedge funds, and it excludes fund of funds capital.

According to the PEI 300, TPG has raised $52.35 billion for direct investment since 1 January 2004. The figure takes into account the reported fund-size decreases that TPG has offered to its limited partners recently. TPG, as well several other large private equity firms, have been pressured to downsize some funds following final closes as some LPs have struggled to meet capital calls.

Carlyle, with its large family of funds around the world, has moved to number 3 on the PEI 300, having raised $47.73 billion over the past five years. Carlyle’s rank was largely influenced by a change in its relationship with energy specialist Riverstone Holdings, which this year debuts on the PEI 300 at number 34. Riverstone’s two new funds are branded “Riverstone/Carlyle” whereas past funds were branded “Carlyle/Riverstone”. The change is accompanied by Riverstone, an independent firm, taking a greater share in the economics of the new funds.

As detailed in the May issue of Private Equity International, the PEI 300 firms have together raised some $1.34 trillion for direct-investment capital. Over the same five-year period, these firms have done deals valued at some $1.81 trillion, according to Dealogic, or just north of 10 percent of all M&A deals globally. The vast majority of the firms are based in North America and Western Europe, primarily in the UK. The largest non-Western private equity firm in the world is Dubai-based Abraaj Capital, number 55, which has raised some $6.5 billion since 1 January 2004.

Number 300 on the list, Chicago-based private equity firm Thoma Bravo, raised $822 million over the same time period.

The top ten firms in the PEI 300 are:

1) TPG
2) Goldman Sachs Principal Investment Area
3) The Carlyle Group
4) Kohlberg Kravis Roberts
5) Apollo Global Management
6) Bain Capital
7) CVC Capital Partners
8) The Blackstone Group
9) Warburg Pincus
10) Apax Partners