Report Details Private Equity’s Increased Presence In All 50 States
WASHINGTON – Private equity funds invested over $644 billion in more than 3,700 U.S.-based companies in 2016, according to the American Investment Council’s (AIC) newly released Top States and Districts in 2016 analysis. This annual report ranks the top 20 states and Congressional districts by investment value and number of investments, breaks down which business sectors received the most PE investments, and provides aggregate numbers detailing private equity’s domestic impact.
“This report is an in-depth look at the increasingly valuable economic impact of private equity at the state and local levels,” said AIC President and CEO Mike Sommers. “The industry’s $644 billion in 2016 investments is long-term capital that contributes to sustained growth in all 50 states and leads to successful returns for pensions, university endowments, charitable foundations, and other investors.”
Texas received the most investment from private equity (measured in dollars invested) totaling $79.89 billion in 413 companies, followed by California, Massachusetts, Florida, and New York. Massachusetts’ 4th congressional district, represented by Rep. Joe Kennedy III, received $61.15 billion and ranked as the top district for private equity investment.
The rise of Massachusetts’ 4th congressional district to the top of the list was driven in large part by the AIC member firm Silver Lake-backed Dell Technologies’ acquisition of EMC, which created the world’s largest privately-controlled tech company.
Congressional districts represented by Rep. Carolyn B. Maloney (NY-12), Rep. Ted Deutch (Fl-22), Rep. Peter Welch (VT-At Large), and Rep. Anna G. Eshoo (CA-18) rounded out the top five.
“The healthy competition among PE firms to deploy capital translates into innovative solutions for portfolio company growth strategies and improved efforts to repair distressed companies, regardless of their geography,” said Bronwyn Bailey, AIC Vice President of Research and Investor Relations. “Our report also demonstrates the industry’s ability to successfully invest in diverse sectors such as information technology, business services, energy, and healthcare. Private equity is extending its reach and investing for the long-term throughout state economies.”
See the full set of data from the report on AIC’s state-by-state map by visiting: www.investmentcouncil.org.
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.