On Monday, the American Investment Council (AIC) released a new report highlighting how the private equity industry supports jobs and invests billions of dollars in the communities of all new members of Congress. Please see the following excerpts of immediate new coverage of the report:
PE Report puts AIC on the front foot with new Congress
By Isobel Markam
Private Equity International
January 7, 2019
The American Investment Council has produced a report for new members of Congress outlining private equity’s impact on their states and districts. The report provides state-level jobs and investment data for the nine new senators and at district-level data for 40 new house members.
The AIC produces reports on a regular basis, but this is the first time the industry organization is presenting new members with this information as soon as they take office. The report is intended as “the initial education to the new members of Congress about how important private equity investment and job creation is in a district-by-district basis”, AIC president and chief executive Drew Maloney told Private Equity International.
While Congress members are generally familiar with the businesses in their districts, they are often unaware many of them are private equity backed, Maloney said. According to the report, private equity has invested $3 trillion in US companies from 2012 to 2017, and private equity backed companies employ 4.9 million people across the country. The industry has produced returns of 8.6 percent for pensions of public sector workers and retirees over the ten year period to 30 June 2017.
Throughout the year the AIC brings members to private equity-backed portfolio companies inside their districts to make the industry’s investment more relatable.
It is a “constant challenge” to educate members of Congress about private equity, as the industry is “competing with every other organization” that’s trying to get its message across, Maloney said. This is why the AIC has chosen to give new members just two numbers to focus on – investment and jobs – at the local level. “We want to remind them we’re very engaged in their local communities and responsible for a significant amount of investment and a significant amount of job creation.”
By Colin Wilhelm
The Washington Examiner
January 7, 2019
Private equity’s trade association is trying to build new in-roads for the industry in Washington with a new report quantifying private equity investment in states and congressional districts. The report from the American Investment Council specifically highlights private equity investment in districts and states of new members of Congress.
“I think the idea behind it was to be early out of the gate in education of new members,” said Drew Maloney, the association’s president and CEO. Maloney added that the group doesn’t have a specific policy ask yet: “That’s oftentimes the best time to come in and talk with a member, when you don’t have an ask.”
According to 2017 data from the investment research analysis firm Pitchbook used by AIC’s report, districts represented by Republican Rep. Tim Burchett of Tennessee and Democratic Reps. Jason Crow of Colorado and Katie Porter of California saw the most private equity investment of incoming House members in terms of pure dollar figures, while Republican Sens. Rick Scott of Florida and Marsha Blackburn of Tennessee saw the greatest private equity influx among new members of that chamber.
Porter, who touted Sen. Elizabeth Warren’s D-Mass., support during her primary, represents a section of Southern California that led the way with nearly $7 billion in private equity investment in 2017, while Burchett’s portion of east Tennessee saw $6.54 billion. Crow’s district, which includes portions of Denver’s suburbs, came in third with $5.2 billion.
Florida saw close to $30 billion in private equity investment in 2017, while the whole of Tennessee received $21.53 billion.
American Investment Council issues report on private equity investment
By Dave Kovaleski
Financial Regulation News
January 8, 2019
A new report highlighting how the private equity industry supports jobs and invests billions of dollars in the communities across the country was released by the American Investment Council (AIC) last week.
The report specifically provides jobs and investment data for the regions represented by the nine new Senators and 40 new members of the House of Representatives. For example, in Florida, represented by new Sen. Rick Scott (R-FL), there have been over 1 million private equity-backed jobs and $29 billion in private equity investment. In Arizona, where Sens. Martha McSally (R-AZ) and Kyrsten Sinema (D-AZ) take their seats, there have been over 150,000 private equity-backed jobs and $10 billion in private equity investment.
Further, in the district represented by Rep. Haley Stevens (D-MI), there have been over 49,000 private equity-backed jobs and $3 billion in private equity investment, while the district served by Rep. Dan Crenshaw (R-TX) has seen over 16,000 private equity-backed jobs and $2.3 billion in private equity investment.ment in 2017, while the whole of Tennessee received $21.53 billion.