21 private equity power players shaping the $8 trillion industry

21 private equity power players shaping the $8 trillion industry

The Rise and Succession in the Private Equity World

Private equity firms have become major players in the global economy, managing trillions of dollars in assets and employing millions of people. Despite challenges in deal flow and interest rates over the past year, private equity companies continue to thrive, with approximately $8 trillion in assets under management worldwide, including $4.1 trillion in the United States alone. This enormous sum of money, often referred to as “dry powder,” provides capital for investment opportunities across various sectors.

The Evolution and Expansion of Private Equity

Private equity firms, such as KKR, Blackstone, and Carlyle Group, have come a long way since their establishment in the 1970s and 1980s. Originally focused solely on private equity investments, these firms have expanded their portfolios to include credit, real estate, and infrastructure. Consequently, they now identify themselves as alternative asset managers or investment firms. This expansion has allowed them to diversify their investment strategies and adapt to changing market conditions.

The Challenges of Leadership Succession

Leadership succession has been a prevalent topic in the private equity industry. The founders of many of the original firms have been reluctant to pass on the reins to the next generation. However, in recent years, several buyout shops have laid out succession plans to ensure a smooth transition. Unfortunately, this process doesn’t always go as smoothly as planned and can sometimes lead to public disputes and power struggles. One notable example is the case of Apollo Global Management, where founder Leon Black’s departure in 2021 sparked a high-profile power struggle over his replacement, eventually resulting in the appointment of Marc Rowan.

The Young Leaders Rising in the Private Equity World

Unbeknownst to those outside the industry, a group of younger private equity executives has been quietly making waves and achieving remarkable success. These leaders, although relatively unknown to the general public, are well-respected within the industry. To identify these rising stars, private equity experts reviewed the most significant investments and exits and canvassed industry insiders for insights. Let’s take a closer look at some of the notable figures in this new guard and their achievements.

Robert F. Smith – Vista Equity Partners

Robert F. Smith, founder, chairman, and CEO of Vista Equity Partners, is considered one of the most influential executives on Wall Street. Despite the slowdown in dealmaking, his firm has remained active, with over $100 billion in assets under management. Vista primarily focuses on software company investments and has recently completed three significant take-private acquisitions. The firm has also had several successful exits, including the sale of Apptio to IBM for $4.6 billion.

• China’s only G7 member appears poised to withdraw from the Be...
• 95% of tech CFOs believe generative A.I. will enhance productivity,...
• Coinbase CEO Brian Armstrong SEC proposed change that could have en...

Outside the financial world, Smith is known for his philanthropy. In 2019, he made headlines for paying off $34 million in student loans for Morehouse College graduates. With an estimated wealth of $12 billion, Smith is recognized as one of the world’s billionaires and one of the richest Americans.

Jon Gray – Blackstone

Jon Gray, the president and COO of Blackstone, is widely regarded as the heir apparent to the CEO and Chairman, Stephen Schwarzman. Under Gray’s leadership, Blackstone became the first alternative asset manager to surpass $1 trillion in assets under management. Gray joined Blackstone right after completing his studies at the University of Pennsylvania and has spent his entire career at the firm.

Gray is credited with orchestrating Blackstone’s $26 billion acquisition of Hilton Hotels, which proved highly profitable when the firm took Hilton public in 2013. These successful moves have solidified Gray’s position as a future leader of the firm.

Marc Rowan – Apollo Global Management

Marc Rowan took charge of Apollo Global Management amid a controversial and messy leadership transition. Rowan had been responsible for some of Apollo’s most profitable plays, including the merger with insurer Athene. Since his appointment, Apollo’s shares have risen by 66%, and the firm’s assets under management have increased significantly to about $598 billion.

Beyond his work in private equity, Rowan is involved in philanthropy and holds prominent positions in various charitable organizations. As chair of the board of the UJA-Federation of New York and other roles, Rowan is committed to making a positive impact beyond the financial realm.

Orlando Bravo – Thoma Bravo

Orlando Bravo, the founder and managing partner of Thoma Bravo, has been actively leading his firm during the slower merger landscape. Thoma Bravo specializes in investments within the software and technology sectors. Recently, the firm made headlines with the sale of fintech Adenza to Nasdaq for $10.5 billion in cash and stock.

Charitable initiatives are also a significant part of Bravo’s life, particularly in his home country of Puerto Rico. When Hurricane Maria devastated the island, Bravo organized airlifts and shipments of essential items, demonstrating his commitment to community support.

Hadley Mullin – TSG Consumer Partners

Hadley Mullin, a senior managing director at TSG Consumer Partners, has shattered gender barriers in private equity. Mullin joined the firm in 2004 and became the No. 3 executive in 2014, making her one of the highest-ranking women in the industry. TSG specializes in investments within the consumer sector and manages around $20 billion in assets.

Mullin’s achievements are a testament to the increasing representation of women in senior positions within the private equity industry. Roughly one-third of TSG’s partners are female, and more than half of the firm’s employees are women.

Other Leaders Transforming the Private Equity Landscape

The private equity industry boasts numerous other leaders who have achieved notable success and made significant contributions to their firms and the communities they serve. Let’s briefly highlight a few of them:

• Harvey M. Schwartz, CEO of Carlyle Group: Schwartz joined Carlyle Group in 2022, bringing with him significant experience from his time as a president and co-chief operating officer at Goldman Sachs. He aims to expand Carlyle’s capital markets and reinsurance businesses.

• Annie Lamont, co-founder and managing partner of Oak HC/FT: Lamont helped launch Oak HC/FT in 2014, focusing on investments in healthcare and fintech. She has approximately 25 credited investments to her name and is the wife of Connecticut Governor Ned Lamont.

• Jeffrey Perlman, president of Warburg Pincus: Perlman was recently appointed president of Warburg Pincus, a leading growth investor. His extensive experience in Southeast Asia and real estate investments positions him as a key driver of the firm’s continued success.

• Martin Nesbitt, co-founder and co-CEO of the Vistria Group: Nesbitt, a longtime friend of former President Barack Obama, established the Vistria Group in 2013. The firm focuses on investments in healthcare, knowledge and learning, and financial services.

• Margaret Anadu, senior partner of real estate at the Vistria Group: Anadu, one of the youngest black females to make partner at Goldman Sachs, leads real estate investments at the Vistria Group. Her focus on sustainability and impact aligns with her role as the former global head of sustainability and impact for asset management at Goldman Sachs.

• William Ford, chairman and CEO of General Atlantic: Ford has transformed General Atlantic into a global investment manager with over $77 billion in assets under management. The firm’s focus on growth equity investments has made it a major player in the industry.

• Jose E. Feliciano, managing partner and co-founder of Clearlake Capital Group: Feliciano was instrumental in establishing Clearlake Capital Group in 2006, leading the firm’s investments in the technology, industrial, and consumer sectors. Clearlake’s recent acquisition of a majority stake in Worldpay highlights its commitment to growth.

• Jon Winkelreid, chief executive and director of TPG: Winkelreid played a significant role in the transition of TPG from a partnership to a public company. His extensive experience at Goldman Sachs and subsequent leadership achievements position him as a key figure within TPG.

• John Connaughton and Jonathan Lavine, co-managing partners of Bain Capital: Connaughton and Lavine have played crucial roles in the growth and diversification of Bain Capital. The firm’s expansive investment strategies across various sectors have propelled it to manage over $175 billion in assets.

• Ramzi Musallam, CEO and managing partner of Veritas Capital: Musallam has been instrumental in Veritas Capital’s success, particularly in government-related industries. Recent deals, such as the acquisition of Syneos Health, have solidified Veritas Capital’s position as a tech-focused investor.

• Steve Klinsky, founder and CEO of New Mountain Capital: Klinsky, a former Goldman Sachs partner, founded New Mountain Capital in 1999. The firm’s focus on consumer, software, healthcare, and fintech investments has propelled it to manage over $40 billion in assets.

The private equity industry is continuously evolving, driven by leaders who possess both financial acumen and a commitment to making a positive impact. These individuals and their respective firms play a crucial role in shaping the global financial landscape, generating returns for investors, and driving innovation and growth in various sectors. As the industry continues to flourish, the future will undoubtedly see new leaders emerge, bringing fresh perspectives and expertise to the dynamic world of private equity.