Private equity firm

Although the industry has developed and matured substantially since it was invented, there has been criticism of private equity firms because they have pocketed huge and controversial profits while stalking ever larger acquisition targets.

[2] The history of private equity firms has occurred through a series of boom-and-bust cycles since the middle of the 20th century with significant growth since the 1980s.

[2] Within the broader private equity industry two distinct sub-industries, leveraged buyouts and venture capital, grew along parallel tracks.

Where private equity firms take on operational roles to manage risks and achieve growth through long-term investments, hedge funds more frequently act as short-term traders betting on the up or down sides of a business or of an industry sector's financial health.

[4] According to Private Equity International's PEI 300 ranking, the largest private equity firms include The Blackstone Group, Kohlberg Kravis Roberts, EQT AB, Thoma Bravo, The Carlyle Group, TPG Capital, Advent International, Hg, General Atlantic, Warburg Pincus, Silver Lake, Goldman Sachs Principal Investment Group and Bain Capital.