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Private Equity

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Private Equity



private equity - Private equities are equity securities of unlisted companies. Private

equities are generally illiquid and thought of as a long-term investment.



They may not necessarily use their own firms’ fund, but may bring in major institutional

investors as their clients or fund sources, such as pension funds or so.



Private equity investments are not subject to the same high level of government

regulation as stock offerings to the general public. Private equity is also far less liquid

than publicly traded stock.







An executive summary of the rankings can be downloaded at

http://www.privateequityinternational.com/pei50 The PEI 50 rankings for 2007 are:



1 The Carlyle Group $32.5 billion



2 Kohlberg Kravis Roberts $31.1 billion



3 Goldman Sachs Principal Investment Area $31 billion



4 The Blackstone Group $28.36 billion



5 TPG $23.5 billion



6 Permira $21.47 billion



7 Apax Partners $18.85 billion



8 Bain Capital $17.3 billion



9 Providence Equity Partners $16.36 billion 10 CVC Capital Partners $15.65 billion 11

Cinven $15.07 billion 12 Apollo Management $13.9 billion 13 3i Group $13.37 billion

14 Warburg Pincus $13.3 billion 15 Terra Firma Capital Partners $12.9 billion 16

Hellman & Friedman $12 billion 17 CCMP Capital $11.7 billion 18 General Atlantic

$11.4 billion 19 Silver Lake Partners $11 billion 20 Teachers' Private Capital $10.78

billion 21 EQT Partners $10.28 billion 22 First Reserve Corporation $10.1 billion 23

American Capital $9.57 billion 24 Charterhouse Capital Partners $9 billion 25 Lehman

Brothers Private Equity $8.5 billion 26 Candover $8.29 billion 27 Fortress Investment

Group $8.26 billion 28 Sun Capital Partners $8 billion 29 BC Partners $7.9 billion 30

Thomas H. Lee Partners $7.5 billion 31 Leonard Green & Partners $7.15 billion 32

Madison Dearborn Partners $6.5 billion 33 Onex $6.3 billion 34 Cerberus Capital

Management $6.1 billion 35 PAI Partners $6.05 billion 36 Bridgepoint $6.05 billion 37

Doughty Hanson & Co $5.9 billion 38 AlpInvest Partners $5.4 billion 39 TA Associates

$5.2 billion 40 Berkshire Partners $4.8 billion 41 Pacific Equity Partners $4.74 billion 42

Welsh, Carson, Anderson & Stowe $4.7 billion 43 Advent International $4.6 billion 44

GTCR Golder Rauner $4.6 billion 45 Nordic Capital $4.54 billion 46 Oak Investment

Partners $4.06 billion 47 Clayton, Dubilier & Rice $4 billion 48 ABN AMRO Capital

$3.93 billion 49 Oaktree Capital Management $3.93 billion 50 Summit Partners $3.88

billion



SOURCE Private Equity International magazine

http://www.privateequityinternational.com .









Venture Capital



venture capital - Venture Capital is the money and resources made available to startup

firms and small businesses with exceptional growth potential. Most venture capital

money comes from an organized group of wealthy investors.







Mezzanine Financing



mezzanine financing - Mezzanine Financing is a late-stage venture capital, usually the

final round of financing prior to an IPO. Mezzanine Financing is for a company

expecting to go public usually within 6 to 12 months, usually so structured to be repaid

from proceeds of a public offerings, or to establish floor price for public offer.







This is different from Mezzanine Debts



mezzanine debt - Mezzanine Debts are debts that incorporates equity-based

options, such as warrants, with a lower-priority debt. Mezzanine debt is actually

closer to equity than debt, in that the debt is usually only of importance in the

event of bankruptcy. Mezzanine debt is often used to finance acquisitions and

buyouts, where it can be used to prioritize new owners ahead of existing owners

in the event that a bankruptcy occurs.



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