Private Equity

Private equity involves buying a stake in a business start-up that needs cash. It involves raising millions from investors, borrowing billions from banks, and using the funds to buy all the shares in a public company seen as underperforming. Bank debt is loaded on to the bought company, clever financial engineering is performed, revenue flows are improved and the business is floated on the market again at a large profit.

Henry Kravis KKR Estimated wealth: £2.4bn KKR's company list includes Boots and BMG, which owns the rights to music by Kylie Minogue, below, The Beach Boys and Leona Lewis, right. It has also invested in Kodak, Pets At Home and Toys R Us. Homes include a $10m (£6.9m) beachfront villa in the Dominican Republic, a five-acre property in Florida. For one party, he flew 6,000 flowers from Europe and the smell of coffee was reportedly pumped into guests' rooms.

Guy Hands Terra Firma Estimated wealth: £100m Took over Phoenix Inns in 1995, selling 1,800 pubs to tenants and organisations around the UK. Also invested in William Hill and specialist off-licence, Thresher, as well as leading cinema chain, Odeon.

Stephen Allen Schwarzman Blackstone Group Estimated wealth: £3.6bn Blackstone's vast portfolio includes the Hilton hotel chain, restaurants Café Rouge, Bella Italia and Strada, biscuit firms McVitie's and Jacob's, Center Parcs, T-Mobile, the Cineworld movie chain and Merlin Entertainments Group. When he turned 60 in 2007, Rod Stewart and Patti LaBelle were hired to serenade the gathering – pushing costs to $5m (£3m)

Damon Buffini Permira Estimated wealth: £95m Permira are major investors in German fashion label Hugo Boss and the Valentino Fashion group, which operates in more than 100 countries. It jointly owns European fashion retailer New Look, which has almost 600 stores in the UK alone. Permira has previously invested in the AA and Birds Eye frozen foods. A former business adviser to ex-Prime Minister Gordon Brown, Buffini is credited for cutting more than 3,000 jobs at the AA and 500 at Birds Eye.

Lyndon Lea Lion Capital Estimated wealth: Unknown Lion controls breakfast cereal Weetabix and underwear range La Senza. It has invested in everything from Kettle Chips, Wagamama and Jimmy Choos to clothing retailers All Saints and American Apparel.

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