US PE Firms Take Top Spots in Global Rankings: Report — Evening Brief – 02.13.25
The most recent HEC Dow Jones Large Buyout Performance Rankings indicate a significant transformation in the private equity sector, as larger companies assert their dominance in the leading positions. The 2023 rankings concentrated on middle-market firms securing between $1 billion and $5 billion; however, the 2024 rankings indicate a shift in this trend.
In the 2024 edition, seven of the top ten firms have each secured over $10 billion during their respective evaluation periods. This transition signifies an increasing accumulation of capital within larger enterprises, which are able to utilize their scale to obtain more substantial deals.
The rankings published by HEC Paris Business School indicate significant changes at the upper echelon of the list. Francisco Partners, a firm renowned for its emphasis on software investments, has secured the top position in 2024. Conversely, Greenbriar Equity Group, a private equity firm specializing in transportation which topped the rankings in 2023, did not qualify for inclusion this year.
TA Associates, which has recently been added to the roster, and Great Hill Partners have secured the second and third positions, respectively, signifying significant shifts in the rankings. Great Hill Partners ascended from fourth place in the preceding year to attain third position. In contrast, Gridiron Capital and Parthenon Capital, which were formerly positioned prominently, are notably absent from this year’s list.
The 2024 HEC Dow Jones Large Buyout Performance Rankings underscore a notable transformation in the geographical distribution of the leading firms. The 2023 rankings featured a significant representation from European firms, such as Archimed and Epiris, which attained positions within the top 10. In contrast, the 2024 rankings exhibit a pronounced preeminence of firms based in the U.S. Hg and Vitruvian Partners, both based in the U.K., are the sole non-U.S. firms to have secured a position within the top 20.
Professor Oliver Gottschalg, who led both the 2023 and 2024 studies, highlighted a significant trend in the latest results. He pointed out that for the first time, seven out of the top 10 firms have raised more than $10 billion over the past decade. This marks a notable shift, particularly in comparison to the 2023 rankings, which were more focused on middle-market firms. He suggested a potential correlation between larger fund sizes and stronger performance metrics.
The 2024 study broadened its scope, offering a more thorough examination of the private equity landscape. The current study encompasses 649 private equity firms and 2,662 funds, an increase from the 632 firms and 1,241 funds in 2023. Furthermore, the overall equity volume analyzed rose to $2.29 trillion in 2024 from $2.18 trillion in 2023.