The private equity industry operates outside the traditional public investment system and most of their engagements include leveraged buyouts, venture capital, and growth capital. The industry thrives in markets such as real estate, infrastructure and merchant banking.

Among the leading private equity companies today is The Carlyle Group. The Washington DC-based private equity outfit has over $91.5 billion of equity capital under management. The firm manages four fund families that specialize in growth capital, leveraged buyouts, leveraged finance investments, and real estate. Led by Louis V. Grestner, Jr. (Chairman) and founders William E. Conway, Jr. and Daniel A. D’Aniello, The Carlyle Group focuses their investments on automotive, aerospace and defense, energy and power, consumer and retail, real estate, health care, telecommunications and media, transportation, and technology and business services.

Kohlberg Kravis and Roberts, commonly known as KKR, is also a premiere private equity firm with major dealings in leveraged buyouts and growth capital. The company is manned by founders Henry Kravis and George Roberts. The company has enjoyed success in the private equity market, and their most notable achievement is the $31.1 billion RJR Nabisco buyout, which was the largest buyout transaction ever made at the time (the record stood for 17 years). Currently, KKR has placed investments in the HCA, NXP Semiconductors, Biomet, and TXU.

Another private equity firm that specializes on leveraged buyouts is the Blackstone Group. The Blackstone Group, unlike most private equity outfits, prefers to deal with more mature companies and places interests through minority investments, corporate partnerships and industry consolidations and occasionally on start-up businesses that are led by new players. Blackstone Group, manned by founders Peter G. Peterson and Stephen A. Schwarzman, capped 2007 with a $3.05 billion annual revenue.

Apollo Management is a leading private equity firm that focuses on purchases of distressed securities involving corporate restructuring, special situations, and industry consolidations in addition to leveraged buyouts. Headquartered in New York City, Apollo Management has already made $16 billion worth of investments since the company’s inception in 1990 and, as of 2008, has garnered over $22 billion investor commitments. Led by founder Leon Black, Apollo Management has made investments in AMC Entertainment, Berry Plastics, Connections Academy, Hexion Specialty Chemicals, Sotheby’s International Realty, and Norwegian Cruise Line to name a few.

Court Square Capital Partners is also one of the premier private equity outfits in the United States with primary interests towards leveraged buyouts. Originally a part of the Citigroup known as Citigroup Venture Capital Equity Partners, Court Square Capital Partners presently handles approximately $6 billion worth of investor commitments. Most of the firm’s investments are staked in companies in the sectors of technology and telecommunications, healthcare, business services, media and publishing, and industrials.

Since the company’s founding in 1968, Court Square’s investment professionals have invested more than $4.5 billion in more than 150 dealings and corporate engagements. These transactions have returned more than $14 billion to date.