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Private Equity International magazine’s proprietary ranking of the largest 300 private equity firms in the world
Executive Summary
This report presents an overview of the 2009 PEI 300, which ranks private equity firms around
the world by size, using Private Equity International’s unique, apples-to-apples methodology. A
complete report on the PEI 300 is featured in the May 2009 issue of Private Equity International,
available only to subscribers or for individual purchase.
Private Equity International is the leading publication for the private equity industry. It is published
monthly by PEI Media, which provides market intelligence and events for professionals in the
private equity, real estate and infrastructure asset classes.
For more information about the PEI 300, contact PEI Media executive editor David Snow at
david.s@peimedia.com.
www.peimedia.com
© PEI Media 2009 Copying without permission from PEI Media is unlawful
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2009 PEI 300 Executive Summary page 3
Firms with the same five-year fundraising total are further ranked based on size of largest fund, then most recent closing of fund
not remained static. Some firms managed to close sizeable fundraisings, which
boosted their respective ranks significantly, or allowed them to debut on the
top 50 list. As in prior years, the PEI 300 based its rankings on this measure: the
amount of private equity direct-investment capital raised or created over the past
five years. See p. 10 for greater detail on the PEI 300 methodology.
Legend:
Higher rank than 2008 Lower rank than 2008 Same rank as 2008
* PEI 50 debut
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page 4 PEI 300 Executive Summary 2009
Firms with the same five-year fundraising total are further ranked based on size of largest fund, then most recent closing of fund
28 Madison Dearborn Partners Chicago $10.6 47
34
* Riverstone Holdings New York $9.4 N/A
39
* Candover London $8.45 N/A
41
* Nordic Capital Stockholm $8.18 N/A
43
* Lindsay Goldberg New York $7.69 N/A
46
* AlpInvest Partners Amsterdam $7.26 N/A
47
* Kelso & Co. New York $7.2 N/A
48
* Citi Alternative Investments New York $7.08 N/A
Legend:
Higher rank than 2008 Lower rank than 2008 Same rank as 2008
* PEI 50 debut
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2009 PEI 300 Executive Summary page 5
Firms with the same five-year fundraising total are further ranked based on size of largest fund, then most recent closing of fund
69 CCMP Capital New York $4,318
70 LS Power Group New York $4,285
71 Altor Equity Partners Stockholm $4,158
72 Crestview Partners New York $4,150
73 TowerBrook Capital Partners New York $4,130
74 Oak Investment Partners Westport (Connecticut) $4,110
75 Citadel Capital Cairo $4,100
76 MBK Partners Seoul $4,060
77 One Equity Partners New York $4,000
78 Pacific Equity Partners Sydney $3,835
79 Lion Capital London $3,756
80 Platinum Equity Partners Los Angeles $3,700
81 Quantum Energy Partners Houston $3,665
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page 6 PEI 300 Executive Summary 2009
Firms with the same five-year fundraising total are further ranked based on size of largest fund, then most recent closing of fund
119 LBO France Paris $2,576
120 GP Investments Sao Paulo $2,550
121 Golden Gate Capital San Francisco $2,414
122 Credit Suisse Private Equity New York $2,400
123 Energy Investors Funds San Francisco $2,400
124 Audax Group New York $2,400
125 Gavea Investimentos Rio de Janeiro $2,390
126 Global Investment House Safat (Kuwait) $2,378
127 Dubai International Capital Private Equity Dubai $2,376
128 Francisco Partners San Francisco $2,332
129 TDR Capital London $2,310
130 Kohlberg & Co. Mount Kisco (New York) $2,300
131 IDG Ventures Boston $2,290
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2009 PEI 300 Executive Summary page 7
Firms with the same five-year fundraising total are further ranked based on size of largest fund, then most recent closing of fund
169 Duke Street London $1,634
170 JLL Partners New York $1,600
171 Astorg Partners Paris $1,598
172 VantagePoint Venture Partners San Bruno (California) $1,585
173 Yorktown Partners New York $1,580
174 Ignition Partners Bellevue (Washington) $1,575
175 Vector Capital San Francisco $1,550
176 Mayfield Fund Menlo Park $1,536
177 Castle Harlan New York $1,531
178 Olympus Partners Stamford (Connecticut) $1,530
179 Flexpoint Ford Chicago $1,505
180 Elevation Partners Menlo Park $1,500
181 Golub Capital Chicago $1,500
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page 8 PEI 300 Executive Summary 2009
Firms with the same five-year fundraising total are further ranked based on size of largest fund, then most recent closing of fund
219 Intel Capital Santa Clara (California) $1,250
220 CITIC Capital Hong Kong $1,246
221 US Venture Partners Menlo Park $1,225
222 Vitruvian Partners London $1,221
223 Menlo Ventures Menlo Park $1,200
224 Paine & Partners Foster City (California) $1,200
225 Spectrum Equity Investors San Francisco $1,200
226 Clearwater Capital Partners New York $1,200
227 Domain Associates Princeton (New Jersey) $1,200
228 Aisling Capital New York $1,200
229 Gilde Utrecht (Netherlands) $1,188
230 Perseus Washington DC $1,182
231 The Sentient Group Sydney $1,175
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2009 PEI 300 Executive Summary page 9
Firms with the same five-year fundraising total are further ranked based on size of largest fund, then most recent closing of fund
269 21 Partners Milan $937
270 Lereko Metier Parklands (South Africa) $934
271 Investitori Associati Milan $924
272 ACON Investments Washington DC $923
273 Brait Private Equity Johannesburg $922
274 Daiwa SMBC Capital Tokyo $915
275 Viola Group Herzeliya (Israel) $913
276 Quintana Capital Houston $910
277 Aurora Capital Group Los Angeles $900
278 TSG Consumer Partners San Francisco $900
279 JMI Equity Fund Baltimore $900
280 Institutional Venture Partners Menlo Park $900
281 Sigma Partners Boston $900
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page 10 PEI 300 Executive Summary 2009
Would you believe that ranking 300 private equity firms by size ing Total” figures, upon which the PEI 300 rankings are based,
is not an easy task? we rely on the most accurate information available. We give
First one needs to define “private equity” and “size”. Then highest priority to information that we receive from or confirm
one needs to gather accurate capital-formation information on with the private equity firms themselves, always on background.
hundreds of firms in what is among the most opaque markets When the private equity firms themselves confirm details, we
in the world. still seek to “trust but verify”.
The result of this hard work is the PEI 300, an expansion of Some details simply cannot be verified by us, and in these cases
an earlier annual ranking conducted by Private Equity Interna- we defer to the honour system. In order to encourage coopera-
tional called the PEI 50. Responding to demand from our read- tion from private equity firms that might make the PEI 300, we
ers, we have simply applied the same rules governing the PEI 50 do not disclose which firms have aided us on background and
rankings to a much larger population of firms. which have not. Lacking confirmation of details from the firms
In compiling the rankings, we are certain that we missed some themselves, we seek to corroborate information using any avail-
important details, but we are equally certain that we exhausted able resources, including the firms’ own websites, press releases,
every available resource in sourcing the best information. Pri- news reports, third-party databases, limited partner disclosures,
vate equity remains a non-transparent asset class, but it is get- etc.
ting more transparent with each passing year. We therefore be-
lieve that the PEI 300 will become more and more authoritative Definitions
as a guide to the most important investment firms in the global
private equity market. To help answer this question – how much private equity capital
A firm’s rank among the largest 300 private equity firms in has the firm raised since 1 January 2004? – we needed to set
the world is determined by how much private equity direct- some definitions:
investment capital that firm has raised over a roughly five-year
window ending at our press date last month. “Private equity”: The definition of private equity for the purposes
of the PEI 300 means capital raised for a dedicated programme of
What is the PEI 300? investing directly into businesses. This includes equity capital for
diversified private equity, buyouts, growth equity, venture capital,
The PEI 300 is a ranking of private equity firms globally by size. turnaround or control-oriented distressed investment capital, and
It is the only apples-to-apples comparison of dedicated, direct-in- mezzanine debt. Our rankings do not take into account funds of
vestment private equity programmes. The rankings began in 2007 funds capital, capital raised for primarily real estate strategies,
as the PEI 50 and was expanded to the PEI 300 in 2009 due to hedge fund capital, infrastructure and debt capital.
demand for more information about private equity firms globally.
The PEI 300 is not a performance ranking, nor does it consti- “Capital raised”: This means capital definitively committed to
tute investment recommendations. The PEI 300 includes private a private equity direct investment programme. In the case of a
equity firms with varying structures and strategies around the fundraising, it means the fund has had a final or official interim
world. While the list is mostly made up of private equity firms close after 1 January 2004. We count the full amount of a fund
that manage private equity limited partnerships, it also includes if it has a close after this date. We also count the full amount
firms with multiple strategies and business lines, and firms with of an interim close that has occurred recently, even if no offi-
publicly traded vehicles. cial announcement has been made. We also count capital raised
However, only a defined type of private equity capital is through other means, such as LP co-investment vehicles, deal-
counted in determining the PEI 300 rankings, as described be- by-deal LP co-investment capital, publicly traded vehicles and
low. The PEI 300 only measures capital raised or formed within earmarked annual contributions from a sponsoring entity, when
a five-year window spanning from 1 January 2004 until 15 April we are able to access this information. Where capital is raised in
2009. Last year’s rankings were also drawn from a 64-month partnership with an affiliated entity, we take into consideration
window, but of course last year the window started on 1 January the economic relationship between the two entities, as well as
2003 and ended on 15 April 2008. how the fundraising was marketed to investors.
Where two firms have raised the same amount of capital over
this time period, the higher PEI 300 rank goes to the firm with We count mezzanine debt raised by firms that are primarily en-
the largest active pool of capital raised since 2004 (i.e., the big- gaged in private equity investing. We only count equity raised
gest single fund). If there is still a “tie” after taking into account for these funds, not the leveraged “buying power”. Mezzanine
size of single fund, we give greater weight to the firm that has debt frequently involves warrants for equity stakes, and has
raised the most capital most recently. historically been counted alongside buyout capital by industry
In coming up with our key “2009 PEI 300 Five-Year Fundrais- media and data services groups.
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2009 PEI 300 Executive Summary page 11
By the numbers
How the PEI 300 firms relate to each other, to last year’s list and to the
broader deal economy
$900
$900 $1000
$1000
$813
$813 $810
$810 $813
$813
$750
$750
$800
$800
Five-year fundraising total ($bn)
$450
$450
$400
$400
$300
$300
$200
$200
$150
$150
$0
$0 00
Top
Top 50
50 Next
Next 250
250 PEI
PEI 50
50 2007
2007 PEI
PEI 50
50 2008
2008 PEI
PEI 50
50 2009
2009
Source: Private Equity International Source: Private Equity International
2.0 $1.81
page 12 PEI 300 Executive Summary 2009
$1.0
PEI 50 outperforms rest of the pack
According to State Street Private Edge (SSPE), the PEI 50 outperformed the next 250 largest firms and the
$0.5
industry as a whole, tracked by the SSPE Index. Non-US PEI 50 firms lead by a clear margin
PEI 50 IRR PEI 300 IRR SSPE
$0.0 Index IRR
PEI 300
Pooled average 13.45% 13.38% 12.92%
By investment focus
Buyout 13.50% 13.29% 13.38%
$1.5 $1.39
Venture$2.5
capital 14.13% 12.87% 12.01%
Mezzanine and others 12.69% 13.55% 10.60%
$1.19
2.0 $1.2
$1.81
By geography
Deal value ($tr)
$0.0 $0.0
PEI 300 PEI 50 2007 PEI 50 2008 PE
Slowing deals for the top 50 PEI 300 deals vs. the world
The largest 50 firms did fewer deals during the five year According to Dealogic, PEI 300 firms spoke for more
window ending April 2009 than the previous period than 10 percent of global M&A over the past five years
$1.5 $1.39 $1.37 $20
$17.41
$1.19
$1.2
$15
Deal value ($tr)
Deal value ($tr)
$0.9
$10
$0.6
$5
$0.3
$1.81 $2.08
$0.0 $0
PEI 50 2007 PEI 50 2008 PEI 50 2009 PEI 300 All PE All M&A
Notes: Excludes real estate and infrastructure deals
Notes: Excludes real estate and infrastructure deals
Source: Dealogic
Source: Dealogic
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A PRIVATE EQUITY INTERNATIONAL PUBLICATION