Carlyle Group

Carlyle Group manages $435 billion in assets, rooted in Washington, DC with a focus on defense and aerospace that no other top-10 PE firm matches. Its $8.5 billion Hertz acquisition in 2005—resulting in a 2009 bankruptcy—teaches a cautionary lesson on leverage, but since 2012, corporate PE funds achieved a 13.3% net IRR, beating the typical buyout benchmark by 1.8%. This unique nexus of political ties and diversified investing keeps it essential in defense-heavy sectors.