INVESTING IN Small Business

Private capital is one of the largest employers in the country. In 2024, private equity directly employed 13.3 million Americans and supported another 20 million jobs indirectly, paying roughly $1 trillion in wages and benefits every year, with an average of $85,000 per worker, well above the national average.Behind those numbers are workers and families contributing to communities across the country. Read the full report: https://bit.ly/3SWoDSz

Headlines have been full of speculation about how investors feel about private credit. So we asked them.AIC surveyed 200 investment decision-makers, and the message was consistent across the board:- 85% call private credit an important source of income and diversification.- 86% are confident it will keep delivering value over the next three to five years.- 85% plan to maintain or increase their exposure over the same period.The people closest to the asset class continue to see value and durability. Full results: https://bit.ly/4yBQlUI

AIC President & CEO Will Dunham joins Finseca CEO Marc Cadin this Thursday, July 23 at 2:00 PM ET for a conversation on private markets, the headlines, and the policy decisions shaping what comes next.Register: https://lnkd.in/eCKgR3gE

When the 2008 financial crisis hit, private capital helped legacy hotelier Hilton navigate it. Private investors backed the company, strengthened the business, and helped it come out the other side stronger. It went on to become the most successful private equity investment in history.That's just one story in a 250-year history of private capital supporting American businesses through good times – and challenges.See how private capital fuels American dynamism: https://bit.ly/3SWoDSz

Today on Capitol Hill, Acting Secretary of Labor Keith Sonderling made the case for expanding access to alternative assets for savers with 401(k)s. Workers deserve access to the same diversification options that have secured public pensions for decades. Watch his answer and learn more: https://lnkd.in/eeSAt5CW

For 250 years, private capital has helped build the American economy. From funding early merchants to backing the technologies shaping the future, it has financed new businesses, built infrastructure, and created countless opportunities. Today it supports 13.3 million American jobs. Our new report with National Association of Investment Companies (NAIC) and PitchBook, America at 250, tells that story. Read the full report: https://bit.ly/3SWoDSz

Private equity has outperformed public markets across every major time horizon. Over the last 5-year period, private equity outperformed by 2.1% for U.S.-focused funds. Over 10 years, by 2.5%. And over 20 years, private equity returned 14.3% annually compared to 10.2% for the S&P 500, according to Prof. Gregory Brown, Research Director at UNC's Institute for Private Capital. That kind of consistent performance matters for retirement savers. Learn more: https://bit.ly/4mtFR3D

A March 2025 study by Prof. Gregory Brown, Research Director at UNC’s Institute for Private Capital, along with Prof. Christian Lundblad and William Volckmann, examined 7,816 private funds across asset classes and geographies and found that buyout funds and private debt have tended to perform well on a risk-adjusted basis. These are the same types of investments that could soon be available to 401(k) savers within balanced, professionally managed target-date funds. Learn more: https://bit.ly/4mtFR3D

A 2024 Ohio State study of over 5,000 private funds found allocations to private equity buyouts increased excess portfolio returns by 2.1% annually on a risk-adjusted basis. Everyday savers deserve access to the same proven investments that have strengthened public pensions for decades. Learn more: https://bit.ly/4mtFR3D

The number of U.S. publicly traded companies has fallen by more than half, from 8,800 in 1997 to 3,952 in 2024. Companies are staying private longer, often during their fastest growth years. And 87% of companies with more than $100 million in annual revenue remain private. Much of today’s growth sits outside public markets, where 401(k) savers have been unable to benefit from it. Learn more: https://bit.ly/4mtFR3D

Everyday savers may soon have access to the same investment options that have helped secure retirements for 34 million teachers, firefighters, and other public servants. For decades, public pension funds have relied on private investments to deliver strong, stable returns. All American workers should be able to enjoy those same options. Learn more: https://bit.ly/4mtFR3D

Today's public markets are increasingly concentrated, and much of today's business growth occurs outside the public markets, leaving retirement savers with fewer options to benefit. Allowing 401(k) savers to access private markets will ensure better diversification and the opportunity to invest in high-growth private companies. Learn more: https://bit.ly/4mtFR3D

A recent Department of Labor proposal provides strong protections for savers who want to include private assets as part of their 401(k)s. Under the proposal, plan managers could include private equity and private credit alongside stocks and bonds in balanced, professionally managed plans, like target-date funds. The move would give savers more options to achieve diversification and long-term returns. Learn more: https://bit.ly/4mtFR3D

What could expanded access to private markets mean for American workers? Georgetown research found that allocations to alternative assets would significantly increase retirement savings outcomes. That’s a real difference for millions of everyday savers. Learn more: https://bit.ly/4mtFR3D

More than 30 U.S. senators urged the U.S. Department of Labor to finalize the proposed rule expanding 401(k) access to private equity and private credit. Nearly 90 million Americans saving for retirement through 401(k)s have been unable to access the same investment options that have strengthened public pensions for decades. This rule would change that.Read the full letter: https://bit.ly/3RE1hjZ

When planning for retirement, everyday savers want to know what will perform best for their individual needs. Private equity and private credit have a proven track record of delivering strong, stable returns. For decades, public pension funds have relied on these investments because they work over the long term and are a smart way to diversify. The Department of Labor’s proposed rule would expand access to these same options in 401(k)s, with strong fiduciary standards in place. Learn more: https://bit.ly/4mtFR3D

AIC has expressed its strong support for the U.S. Department of Labor’s proposed rule expanding 401(k) access to private equity and private credit. In a new comment letter submitted to the agency this week, AIC made the case that everyday savers deserve access to the same investments that have strengthened public pensions for decades, with strong consumer protections in place."With this rule, more Americans will have the option of including private investment in their retirement savings strategy for increased diversification and higher returns." — AIC CEO Will DunhamRead AIC's full statement: https://bit.ly/4dLAV88

As #SmallBusinessMonth wraps, we're reminded that for private equity, every week is Small Business Week. 85% of PE investment supports small businesses, touching every state and every district. Thanks to the entrepreneurs powering Main Street year-round. See how private equity powers small businesses: https://bit.ly/4cIE0p8

"Private equity provides entrepreneurs the capital that's not available to them in other places." Martin D. of Beliade Consumer Partners on how partnering with founders builds value for shareholders, workers, and communities. #SmallBusinessMonthSee private equity's impact on small businesses: bit.ly/4cIE0p8

This #SmallBusinessMonth, see how AIC member KKR partnered with Environmental Dynamics International, a manufacturing small business in Columbia, Missouri, to expand operations, hire workers, and enter new markets.Watch EDI's growth story: bit.ly/4cIE0p8

🍋🟩 "Private equity has been the engine of our growth." — Nick Wiseman, Little Sesame. Watch how Little Sesame scaled from one D.C. kitchen to thousands of grocery stores by partnering with AIC member Beliade Consumer Partners.Watch Little Sesame's story: bit.ly/4cIE0p8

Private equity is driving real impact on Main Street. AIC President & CEO Will Dunham highlights how investment helps founders scale from local favorites to national brands, creating jobs in all 435 districts across 50 states.See private equity's impact on small businesses: bit.ly/4cIE0p8#SmallBusinessMonth 

US Private equity has invested in the long-term growth of more than 21,000 businesses across America, and 85% of them are small businesses. From neighborhood shops to regional manufacturers, we're powering Main Street.See how private equity powers small businesses: bit.ly/4cIE0p8#SmallBusinessMonth

"The only difference between a great 2 AM idea and a real company is capital." This #SmallBusinessWeek, American Investment Council (AIC) Board Chair Pamela Hendrickson Hendrickson shares how private equity helps entrepreneurs grow, hire, and invest in communities in every state.See how private equity powers small businesses: bit.ly/4cIE0p8

It's National #SmallBusinessWeek! Every entrepreneur starts with an idea and does the hardest part: going from zero to one. Private equity provides the capital and support they need to reach new customers and create jobs in communities across America.See how private equity powers small businesses: bit.ly/4cIE0p8

Treasury Secretary Scott Bessent addressed private credit directly this morning at CNBC's Invest in America summit.His bottom line: "None of our work has shown that there would be a systemic problem."Watch the full exchange.

Private market investments provide a valuable source of diversification, since they behave differently than public markets do. For decades, pension funds have relied on private investment to build more balanced, resilient portfolios. Soon, 401(k) savers will have access to the same options thanks to U.S. Department of Labor helping American workers build more secure retirements. Learn more: https://lnkd.in/eeSAt5CW