Dunham: “From financing early merchants to backing the technologies that define the modern economy, private capital has always been integral to our nation’s vitality and dynamism.”
WASHINGTON, D.C. – Today, the American Investment Council (AIC) and the National Association of Investment Companies (NAIC) released a new report, “America at 250: How Private Capital Fuels American Dynamism,” examining the essential role private capital has played in fueling American economic growth, innovation, and competitiveness throughout the nation’s history.
Released in honor of America’s 250th anniversary, the report details how private investment has supported job creation, manufacturing, infrastructure, and innovation – and continues to do so, shaping America’s future.
“From financing early merchants to backing the technologies that define the modern economy, private capital has always been integral to our nation’s vitality and dynamism,” said AIC President and CEO Will Dunham. “The drive to build, innovate, and take smart risks has not only fueled America’s success but embodies its spirit. As this report shows, the private investment industry continues to power the jobs, businesses, and communities that will ensure America’s economic growth and global competitiveness well into the future.”
“For generations, private capital has helped transform bold ideas into thriving businesses, creating jobs, strengthening industries, and driving American prosperity,” said Robert L. Greene, President & CEO of the National Association of Investment Companies. “Diverse and emerging fund managers are extending that legacy by investing in entrepreneurs, underserved markets, and companies with tremendous growth potential that might otherwise be overlooked. Their success demonstrates that expanding opportunity and delivering strong returns are mutually reinforcing—and essential to maintaining America’s economic leadership.”
The report highlights several trends demonstrating the crucial role of private capital, including private equity and venture capital, in the U.S. economy:
- More than 13,000 U.S. businesses are backed by private equity across every sector of the economy.
- 85% of private equity-backed businesses are small businesses.
- 13.3 million workers are employed by the private equity sector as of 2024, and the industry supports an additional 20 million jobs indirectly, paying $1 trillion in wages and benefits annually.
- $85K in wages and benefits earned by average private equity worker, well more than the national average.
- 34 million public sector workers in the U.S. depend on private equity’s strong returns to support the pensions that secure their retirements.
- More than 50,000 investments into American businesses have been made by private equity since 2020.
The report also showcases real-world examples that illustrate the critical difference private capital can make in driving American dynamism across the country:
- Excelitas Technologies, a Pittsburgh-based electronics manufacturer, is a global leader in photonics and sensing technologies, with products embedded in life sciences instruments, semiconductor equipment, industrial systems, consumer devices, and defense platforms. The company partnered with private equity to expand research and development and successfully completed six strategic acquisitions, expanded its manufacturing footprint, and increased R&D spending by around 60%, ultimately strengthening U.S. leadership in photonics, sensing technologies, and advanced manufacturing.
- The New Terminal One at JFK Airport, a $9.5 billion redevelopment project in New York City backed by a private-public partnership, is expected to create approximately 10,000 jobs. When fully complete, the New Terminal One will feature 23 gates, large light-filled check-in and arrivals halls, modern security and customs facilities, modernizing one of the nation’s most important transportation hubs.
- Big River Steel helped bring advanced manufacturing to Arkansas through what was, at the time, the largest private investment in state history, creating hundreds of well-paid industrial jobs, and is widely recognized as one of the most technologically advanced and environmentally friendly steel mills in the world.
- Geostabilization International, based in Colorado,demonstrates how private capital can support both business growth and better outcomes for employees. The company implemented an employee ownership program that gives workers a direct stake in the business, helping employees share in the value they help create while supporting the company’s continued growth as it delivers critical infrastructure and geotechnical engineering services.
The report also features a timeline tracing some of the most significant milestones in the history of private capital investment in America. It includes key milestones, like the offering of collateralized loans that gave merchants and households an alternative to loan sharks in the 19th century, the expansion of pension fund investment into private markets in 1979, and private investment’s backing of transformative companies like Apple. The timeline demonstrates the enduring role of private capital in advancing American prosperity and competitiveness.
Read the full report here.