You don't need a lot of money to run a successful PE business. Many generate big returns for relatively little AUM. Let's analyze the four best and most successful private equity firms:
1. Center Valley Fund
Their investment paper is published on the CVF website. Invests in small businesses in the United States. They do management buyouts, capital increases, mergers, acquisitions, and more. Rarely do companies do so much. PE firms are usually specialized. They are a unique company because they have so many connections that they have a good business flow.
2. Leavitt Equity Partners
They put money into healthcare; that is their vertical. Interestingly, they co-invest, which means they most effectively take the minority stake within the investment. They offer to assist different PE companies in investing in healthcare. Leavitt permits to do the grunt painting for different companies because healthcare is messy. But they may be highly successful with it. You do not need to be the biggest hitter in the sector to make money.
3. Tower Arch Capital
They specifically invest in mature companies, most likely Ma & Pa companies. Tower Arch only invests in companies with revenues of $20 million to $150 million.
4. Partners Group
They are one of the largest PE companies in the world. AUM is $127 million, headquartered in Switzerland. They work in healthcare, consumer goods, industrial, real estate, and more.
While these companies are different, remember that each started by buying a business and growing from there. So don't give up! Syndicate your first small business, then scale it!