Private Equity is Investing in America

Private equity builds better businesses across America, supports millions of jobs, and delivers the strongest returns to support the retirements of millions of workers.

11.7 M

Employees at Private Equity-Backed Companies

32,041

Private Equity-Backed Businesses Since 2017

34 M

Americans Depend on Private Equity to Support Their Retirements

What Does Private Equity Do?

Supporting Small Businesses

Small businesses are the lifeblood of local communities. They enrich our cities and towns with culinary delights, fresh ideas, and disruptive thinking. They also serve as ladders for socioeconomic mobility, allowing anyone with a good idea, hard work, and a bit of luck to achieve the American dream. In 2021 alone, 74% of private equity investments went to companies with fewer than 500 employees. These investments play a critical role in ensuring small businesses are making a resilient comeback after the challenges faced from the COVID-19 pandemic.

Increasing Sustainability

Private equity is expanding its clean technology footprint, investing almost $150 billion in more than 1,000 U.S. clean technology companies over the past decade. These investments include a range of renewable energy solutions – such as solar, wind, and hydroelectric – as well as areas like electric vehicles, waste management, food production and supply chain sustainability, and recycling solutions.

Improving Health Care

In the last decade alone, private equity has invested $280 billion across more than 1,800 life sciences and medical device companies in the U.S. By partnering with companies across the life sciences spectrum, private equity is building better businesses — providing financial support and strategic advice to develop innovative technologies and devices that benefit patients and improve lives.

Where does private equity invest?

11 million Americans are directly employed by private equity

In 2021, private equity invested over a $1 trillion in the U.S. economy

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

District of Columbia

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

How does private equity strengthen retirements?

Private Equity Delivers the Strongest Returns

The AIC released the 2021 Public Pension Study. As has been the case each year since its inception, this study found private equity to be the best returning asset class in public pension portfolios. In 2020, private equity continues to provide a strong return on investment, with a median annualized return of 12.3 percent over a 10-year period.

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