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AIC Issues Statement on Warren’s Harmful Economic Proposal

WASHINGTON, D.C. — Today, American Investment Council President and CEO Drew Maloney issued the following statement regarding an economic plan proposed by Senator Elizabeth Warren (D-MA) that targets private equity:
Private equity is an engine for American growth and innovation – especially in Senator Warren’s home state of Massachusetts. Extreme political plans only hurt workers, investment, and our economy.”

Private equity’s impact on the economy:

  • Investing in America: There are currently 5.8 million Americans who are employed by 35,000 private equity-backed businesses across America. Between 2013-2018, private equity invested an estimated $3.4 trillion to help these American businesses grow.
  • Supporting public pension funds: Private equity is the highest performing asset class for public pension funds, delivering a median 10-year annualized return of 8.6 percent. These returns crucially support the retirements of schoolteachers, first-responders and other dedicated public servants nationwide at a time when public pension funds face a $1.4 trillion shortfall.

Private equity supports Massachusetts:

  • From 2013-2018, private equity invested more than $198.88 billion in 840 Massachusetts-based businesses. These local businesses employ 396,597 workers in Massachusetts.
  • The Massachusetts Pension Reserves Investment Trust (Mass PRIT) has invested $7.7 billion in private equity. Private equity represents 10.8 percent of the fund’s total investments.
  • In 2018, Mass PRIT had the highest private equity returns of any public pension in the country:
    • 21.84 percent 1-year return
    • 18.34 percent 3-year return
    • 19.41 percent 5-year return
    • 13.63 percent 10-year return
  • Read more about how private equity investments support Mass PRIT from the Boston Globe.