New Report: Private Equity Empowers American Workers through Investments and Shared Ownership Opportunities
Nationwide, more than 13 million workers are employed at more than 21,000 private equity-backed businesses.
WASHINGTON, D.C. – Today, the American Investment Council (AIC) released a new report using data from PitchBook showing how private equity (PE) investments empower workers with competitive wages and benefits, innovative ownership programs, and professional skill development. Nationwide, more than 13 million workers are employed at more than 21,000 private equity-backed businesses. Those workers earned more than $1.1 trillion in wages and benefits in 2024, averaging $85,000 per person. From profit-sharing programs to Employee Stock Ownership Plans (ESOPs), more firms are introducing tools that align employee incentives with business success.
- “Tens of thousands of private equity-backed businesses are empowering millions of American workers through high wages and ownership programs, creating wealth, fostering professional growth, and supporting local communities nationwide,” said AIC President and CEO Drew Maloney. “Our report shows how private equity is helping workers directly benefit from the value they help create, whether through equity, retirement security, or long-term wealth generation.”
The report features several case studies demonstrating how private equity supports workers through investments, wages, benefits, and ownership opportunities, including:
- PFB Corporation (Calgary, CAN): Backed by The Riverside Company, PFB doubled earnings, improved safety by nearly 70%, expanded capacity, and rewarded employees with a payout equal to 3.5 months of base salary.
- Charter Next Generation (Chicago, IL): KKR’s 2021 buyout granted over 1,700 employees ownership, driving expansion to 17 facilities and 125 new jobs announced for 2025, showcasing the power of equity alignment.
- Hostess Brands (Lenexa, KS): Apollo and Metropoulos revived Hostess after bankruptcy by streamlining operations and restoring iconic snacks, rehiring roughly 1,200 employees, and positioning the company for acquisition by J.M. Smucker in late 2023.
- Alliance Laundry Systems (Ripon, WI): PE firms enabled Alliance Laundry to expand globally, innovate with cloud-based tech, and scale from $725M in revenue to $350M EBITDA and 4,000+ employees through strategic add-ons.
- Flow Control Group (Charlotte, NC): KKR’s employee ownership model helped Flow Control Group grow from 1,200 to over 2,000 employee-owners across 95+ brands, competing effectively with major industrial distributors.
- CrownRock (Midland, TX): PE firm Lime Rock Management’s 17-year joint venture ownership model in CrownRock delivered a 79x return, aligning employee and manager incentives and producing nearly 160,000 barrels of oil per day by the time of its sale.
- Allison Transmission (Indianapolis, IN): PE firms Carlyle and Onex guided Allison through a recession with profit-sharing and manufacturing optimizations, boosting EBITDA by 30% and investing heavily in R&D before its 2012 IPO.
Read the full report here.
