The Influence of Venture Capitalists and Private Equity Firms
Spotlight on Venture Capitalists
The venture capitalist scene is always abuzz with news of Series A deals into promising B2B SaaS companies, and the venture capitalists themselves often gain significant cultural capital from their investments. Despite the attention they garner, venture capitalists represent only a portion of the broader investment landscape, overshadowed by the staggering magnitude of the private equity industry.
Exploring the World of Private Equity
Over the past few months, we’ve been delving into the operations of Ares Management, an alternative asset manager that emerged from Apollo in the late 1990s. Ares has established a name for itself in the thriving private credit sector, a high finance equivalent of AI. Their main business involves lending to other alternative assets firms like KKR and Apollo, aiding their buyouts of mid-level firms not typically of interest to venture capitalists.
Private Equity’s Role in Today’s Economy
With companies taking longer to go public or choosing not to at all, private credit is playing an increasingly crucial role in our economy. Instead of relying on public markets for funding, businesses are turning to firms like Ares and Apollo for alternatives. Critics argue that this creates potential problems due to the lack of transparency.
Moving the Economy’s Money: Ares Management
Ares Management may not have the same public recognition as venture capital firms like Sequoia or Andreessen Horowitz, but arguably, it plays a significantly larger role in shaping our economy’s movement of money. You can read further on Ares’ rise to success and its unique leadership structure.
Contact Details
Reach out to Leo Schwartz or email him for more information. You can also contribute to the Term Sheet newsletter by submitting a deal here.
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