Business Products And Services Continue To Lead Private Equity Investment

Q2 Industry Investment Report Examines Capital Invested Across Various Industries

WASHINGTON – Today, the American Investment Council (AIC) released its 2016 Q2 Industry Investment Report, highlighting the investment activity of private equity funds in select industries through the start of 2016. Business products and services (B2B) maintained its top position for the second quarter in a row, with consumer products and services (B2C) dipping from Q1 investment levels but still in second position among other industries.

The report also shows the year-to-year returns in each industry, giving insight into the historical performance of private equity in each sector.

Combined, the B2B and B2C industries have received over half of U.S. private equity investment in 2016. Private equity invested $90 billion in B2B ventures and $59 billion in B2C ventures in the first half of 2016. The B2B industry also saw the largest deal of the quarter – ADT Security Services at $15 billion.

“Naturally, certain industries will receive more investment, but I’m impressed by the strong numbers we are seeing across all sectors this year,” said AIC President and CEO Mike Sommers. “Despite market volatility in the first half of 2016, it’s encouraging that private equity is supporting job growth and value creation across our economy. We look forward to a strong second half of the year.”

Many sectors analyzed in the report saw investment largely in line with historical averages. The energy sector, however, experienced a revival. In Q2, energy investment volume nearly doubled, rising from $8 billion to $15 billion. After a three quarter slide, energy also saw an increase in fundraising in this sector, spurring hope for future growth in the industry.

“The doubling of energy investment was the most notable trend of the second quarter,” said AIC Vice President of Research and Investor Relations Bronwyn Bailey. “Despite a slight drop in the number of sector deals, the surge in private equity energy investment indicates increasing confidence that this market will rebound.”

Industries included in the report are as follows: consumer products and services; business products and services; financial services; information and technology; healthcare; energy; and materials and resources. Read the full report here.

About the American Investment Council

The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at www.investmentcouncil.org.

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