“Did You Know” How Private Equity Creates Value for Small Businesses?
Perspectives from a Portfolio Company Leadership Summit in Arizona
WASHINGTON, D.C. – Today, the American Investment Council released a new video series highlighting the value of private equity partnerships for small businesses. Each “Did You Know?” short video clip features a quick testimonial from a small business leader speaking to a personal experience working with private equity.
Each story is especially salient in the context of a new proposal on Capitol Hill to drastically increase taxes on private capital. If growth investors are singled out for a massive tax increase, they will be seriously limited in their ability to invest in companies like these.
This video series was filmed in Scottsdale, Arizona at the Riverside Leadership Summit, an annual gathering of portfolio company leaders organized by The Riverside Company.
In 2021, 74% of all private equity investment went to companies with fewer than 500 employees. In total, the industry invested over $1 trillion into local communities to build better businesses and support jobs.
Did you know?
Private equity partnerships add value beyond capital investment
“Private equity provides a tremendous amount of value, being a great sounding board for key business decisions and providing help and support and resources when it comes to best practices.” – Abhi Agrawal, CEO of SCRAM Systems, Littleton, Colorado
“The private equity group that I’m working with has given me resources that I would never have without having this relationship, resources not from just a financial perspective, but from an HR perspective, from an IT perspective.” – Ian Kelly, CEO of Red Nucleus, Yardley, Pennsylvania
Private equity invests in thriving companies
“Private equity in our case has been investing in thriving companies that know that there’s a lot of demand for the products, and just need some help and some investment getting to that next level of growth.” – Hagan Kappler, CEO of Threshold Brands, Boston, Massachusetts
Private equity improves management and operations
“The advantage that the private equity world brings is that I have a team that we can bounce ideas off of. It allows us to think through issues better and, I think, come to better decisions overall.” – Brian Briggs, CEO of FlavorSum, Kalamazoo, Michigan
“It’s been dramatic in terms of the opportunity for growth, the injection of not only investment, but operational support that we received.” – John Deignan, CEO of Baker Hill, Carmel, Indiana
Private equity invests in companies of all sizes
“It’s really helpful to know that you don’t have to be a $20 or $50 million dollar organization to partner with a private equity organization.” – Vennesa Van Ameyde, COO of Kasasa, Austin, Texas
Klinsky: “The ability to have ‘service partners’ and ‘sweat equity’ … has been fundamental to American entrepreneurialism.”
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