Today, the American Investment Council released its annual Top States and Districts report, which ranks the country’s top twenty states and Congressional districts both in terms of total private equity capital and the number of companies receiving investment in 2020.
Key findings from the report include:
- California topped the list of states receiving the most private equity investment, with $87 billion in capital invested. The top 5 states included California ($87 billion), Texas ($60 billion), Florida ($59 billion), New York ($42 billion), and Massachusetts ($37 billion).
- Private equity is supporting businesses in every state in the U.S. The states with the most PE-backed companies are in all corners of the country, including investments in companies like Safe Harbor Water Power in Pennsylvania, Sierra Machinery in Nevada, Five Rivers Cattle Feeding in Colorado, and Huddle House in Georgia, to name a few.
- Colorado District 2, represented by Rep. Joe Neguse, received the most private equity investment of any congressional district. The ranking of the top 20 districts spanned across 12 states, in every region of the country. The top five districts include:
- Rep. Joe Neguse’s CO-2 ($16.87 billion)
- Rep. Stephen Lynch’s MA-8 ($16.83 billion)
- Rep. Carolyn Maloney’s NY-12 ($15.19 billion)
- Speaker Nancy Pelosi’s CA-12’s ($15.03 billion)
- Rep. Debbie Wasserman Schultz’s FL-23 ($12.15 billion)
- Rep. Chip Roy’s TX-21 ($8.72 billion), Rep. John Curtis’s UT-3 ($8.56 billion), and Rep. Diana DeGette’s CO-1 ($7.38 billion) rounded out the top ten districts receiving the most private equity investment.
“Our annual Top States and Districts Report underscores how private equity is supporting businesses and jobs in every state across the country,” said Drew Maloney, American Investment Council President and CEO. “Last year, private equity provided hundreds of billions of dollars to struggling companies to save jobs and help businesses make it through the pandemic. The figures in this report are more than just data points – these are business owners and American workers who found a steady partner in private equity during uncertain times.”
Private equity firms provided hundreds of billions of dollars of equity to struggling companies in 2020. Despite the turmoil, private equity had its most active year ever and eclipsed 5,000 deals last year, totaling more than $650 billion in capital invested. Many of those investments were rescue capital — restaurant chains and hair salons bought out of bankruptcy, or public companies such as Airbnb and Expedia receiving much-needed capital to ride out the storm.
As of 2020, the vast majority — 86 percent — of private equity investment went to small businesses employing 500 workers or less. PE supported nearly 14,000 small businesses, and roughly a third of businesses receiving private equity backing employed just 10 workers or less.
The report also includes a breakdown of the top states for PE investment in healthcare, energy and renewable energy, manufacturing, technology, agriculture, education and more. The full report with additional data and case studies can be found here.