Know the Leaders: Top 4 PE Firms in Boston

Known for being go-getters, private equity professionals are highly sought across industries – for their financing, valuation, business development, and other acumen. 

No wonder careers in private equity are on the most-wanted list of business and finance graduates. 

Private equity is the melting pot of learning. 

You learn about varied industries and sectors. Deal-making. Financing trends. What’s more? The salary along with the lifestyle is very satisfying. 

What does it take to make a move for private equity career? What are the skills required for the job? Before delving into them in the later series, first we take a look at who are the top players in PE industry – in Boston area. 

As it’s said, the view is best from the top. Here is a quick peek into the industry, and the top 4 PE firms, which stand out in the Boston, MA. 

Private Equity – A Quick Look

The goal of private equity professionals is to seek promising businesses with high growth potential. They spot them, acquire equity in those companies, and gain returns with the growth of those companies. 

PE firms invest in only private companies, i.e. those companies that are not publicly traded on an exchange. 

PE industry uses many strategies to make investments in the equity stakes of these companies. 

• Leveraged buyout is used when a PE firm borrows money in order to invest in a company – by keeping the cash flow reserves of this company as collateral. 

• Venture capital is used when a startup or a small business is provided with the capital to grow, run, or maintain their business. These investments are usually made in the idea – an unseen technology idea or something else – of a company. 

• Growth capital is like venture capital. However, instead of targeting new companies, they invest in mature companies to help them grow or restructure.

Top 4 Private Equity Firms in Boston

Boston, Massachusetts is considered as the hotspot for PE firms. Bain Capital, one of the biggest names in Private Equity is also situated there. 

We take a close look top four firms in PE industry that are in Boston, MA, USA. 

1. Bain Capital

• $100 billion in total assets, as of 2020.

Mitt Romney, republican politician, co-founded Bain Capital. In fact, private equity funding and investment came to the limelight when he ran for president’s office twice – once in 2008, and another in 2012. 

Today, Bain is one of the biggest private equity and venture capital firms. And has become a household name in the US and the world. 

Romney with his two partners founded the firm in 1984. The following year they raised $34 million. The start was not so grand with Romney thinking of shutting the company at one point. Bain got its first break with its investment in Staples, an office supply retailer company. After becoming public in 1989, Staples grew rapidly, and launched Bain into the top league of private equity industry. 

2. HarbourVest Partners

• $71 billion in total assets, as of 2020.

HarbourVest Partners started as a subsidiary of John Hancock Insurance. It specializes in leveraged buyouts and venture capital investment types. 

Started in 1982, financial institutions are its main targets. It aligns with other PE firms to make large secondary market transactions – for instance its purchase of $2 billion fund from CalPERS (California Public Employees’ Retirement System). 

It hires specialized PE professionals for category-wise teams. Some of its subcategories include US VC, US Buyouts, Europe, Latin America, Emerging Markets, and Asia, among others. It recently launched a division for clean energy and clean tech. Diversification is what has kept its portfolios on a solid footing. 

3. TA Associates

• $32.5 billion in total assets, as of 2020.

Founded about a decade before Bain in 1968, TA Associates is currently involved in over 500 investments. 

It achieved its growth in 1970s – going from less than $5 million in assets to over $125 million in the decade. Its achievements came from an array of industries – such as consumer products, financial services, and healthcare. 

4. Summit Partners

• $19 billion in total assets, as of 2018.

Founded in the same year as Bain Capital, the primary areas of Summit Partners investments are tech and healthcare. A few of the well-known startups including AVAST, McAfee, WebEx, and others have grown with their help. 

Build the skills and acumen to reach to the top in private equity industry with United States Private Equity Council (USPEC) certifications. Prove your mettle for the biggest, largest, and the brightest.