With Washington D.C. being the political and administrative capital of the United States, it comes as no surprise that many major investment companies choose to headquarter there. Located along the Potomac River, Washington D.C. provides these investment firms prime access to regulatory agencies like the Securities and Exchange Commission (SEC) and proximity to power brokers on Capitol Hill and the White House. In this article, we will explore the top 5 investment companies headquartered in Washington D.C., examining their business focuses, assets under management, and investment strategies.
The Carlyle Group – One of the Largest Private Equity Firms
Founded in 1987 and headquartered in Washington, D.C., The Carlyle Group is one of the world’s largest global investment firms with $224 billion in assets under management. The firm operates through four segments: Corporate Private Equity, Real Assets, Global Credit, and Investment Solutions. With extensive experience in private equity, The Carlyle Group makes controlling investments in companies across a range of industries including technology, media, healthcare, industrial, consumer/retail, aerospace/defense, telecom, and financial services. The Carlyle Group takes a hands-on approach to creating value at portfolio companies, relying on a combination of financial, operational and strategic expertise to grow earnings and enhance competitiveness.
FBR & Co. – Boutique Investment Bank Focusing on M&A
FBR & Co. is an investment banking firm headquartered in Arlington, Virginia right across the Potomac River from Washington D.C. Founded in 1989, the firm focuses on providing mergers and acquisitions (M&A) advisory, restructuring services, equity research and capital markets services to clients in growth industries. FBR & Co. aims to leverage its sector expertise in communications, energy and power, healthcare, technology, transportation and logistics, and real estate to identify M&A opportunities and deliver successful transactions for clients. The firm has advised on over $500 billion in transaction value and raised over $200 billion in capital for corporate clients and private equity sponsors.
FTI Consulting – Multinational Advisory Firm
Founded in 1982 and headquartered in Washington, D.C., FTI Consulting is a global advisory firm that provides services in the areas of corporate finance & restructuring, economic consulting, forensic and litigation consulting, strategic communications and technology. With over $4.5 billion in revenues and more than 6,300 employees in 30 countries, FTI Consulting brings multidisciplinary expertise to bear in addressing complex business challenges and opportunities for clients. The firm’s corporate finance practice advises clients on M&A, capital markets transactions, capital structure optimization, valuation and financial reporting. FTI assists clients across a broad array of industries including healthcare, construction, retail, media, insurance, energy, mining and real estate.
EAB Global – Research and Advising for Education Industry
Founded in 1978 and headquartered in Washington, D.C., EAB Global, Inc. provides research, data analytics and advice to education industry leaders to enable student success and institutional growth. The company serves over 1,700 education institutions through its Student Affairs and Technology, Academic Affairs, Enrollment Management, Advancement, Health Sciences, Government, Risk and Operations divisions. EAB Global leverages data and actionable insights to help colleges and universities tackle their most pressing challenges in enrollment management, student engagement, and operational effectiveness. In 2015, EAB acquired Royall & Company, a leading provider of enrollment management and student success solutions.
Freddie Mac – Government Sponsored Mortgage Securities Provider
The Federal Home Loan Mortgage Corporation (Freddie Mac) is a government-sponsored enterprise headquartered in McLean, Virginia near Washington D.C. Along with its sister organization Fannie Mae, Freddie Mac operates under a congressional charter to provide liquidity and stability to the U.S. housing market. The company purchases mortgage loans originated by lenders and packages them into mortgage-backed securities that can be sold to investors. This provides lenders funds to offer more mortgages to homebuyers. With over $2 trillion in mortgages and mortgage-related securities, Freddie Mac is a leading issuer of mortgage and asset-backed securities. The company has played an integral role in making homeownership more accessible and affordable for millions of Americans.
As the center of political power, Washington D.C. has developed into a hub for major players in finance and investments. The top investment firms choose to locate their headquarters in the capital to stay closely connected to regulatory bodies and power brokers. From private equity giants like Carlyle Group to government housing agencies like Freddie Mac, Washington D.C. offers these firms prime positioning and access.