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New AIC Video Highlights Private Equity’s Role in Strengthening Retirements for Millions of Americans
Head of Nation’s Largest Public Pension Fund Says “We Need More” Private Equity

WASHINGTON, D.C. — On the heels of a new report by EY outlining how the private equity industry now supports more than 26 million US jobs and roughly 5% of US GDP, the American Investment Council today released a new video detailing the important role private equity also plays in strengthening the retirements for millions of Americans.

Millions of teachers, firefighters, police officers and dedicated public servants in all 50 states are now relying on private equity to help deliver a stronger and more secure future for themselves and their loved ones,” Drew Maloney, AIC President and CEO said today. “Private equity is a driving force for economic growth and opportunity that is investing in communities and it has become vital to the retirement security of American workers.”

Studies show that private equity continues to lead all asset classes in long-term investment performance, with private equity’s median 10-year annualized return of 10.2 percent surpassing public equity’s 8.5 percent and real estate’s 4.8 percent. In 2018, for example, private equity delivered the highest return of any asset class on average for the country’s top 165 public pension funds, which support the retirements for millions of teachers, firefighters, police officers and many others.

As noted in AIC’s new video released today, this led Ben Meng, chief investment officer of the country’s largest pension fund, California Public Employees’ Retirement System, to state publicly earlier this year, “We need private equity, we need more of it, and we need it now.”

Among the examples of how private equity is strengthening the retirements for millions of Americans, the new video details several key examples of investment returns including:

  • New York Common Retirement Fund – 12.2 percent 10-year annualized returns
  • Ohio School Employees – 13.3 percent 10-year annualized returns
  • Los Angeles County Employees’ Retirement Association – 11.4 percent 10-year annualized returns

Public pension funds across the nation partner with private equity because our industry has a proven track record of maximizing returns and providing stability for hardworking Americans,” Maloney concluded.