New Report: Private Equity Invested $64 Billion In More Than 1,000 American Businesses in Q1 2020
Today, the American Investment Council (AIC) released its 2020 Q1 Industry Investment Report showing that private equity invested $64 billion(1) in more than 1,000 American businesses across every major sector of the economy. Throughout the COVID 19 pandemic, private equity has continued to support and invest in American businesses. The top three sectors receiving the most private equity investment in 2020 Q1 were Information Technology ($26 billion), Business Products and Services ($19 billion) and Energy ($8 billion).
“A portion of the $64 billion private equity invested in the first quarter of this year went to businesses dealing with the unprecedented effects of COVID-19 and the resulting economic crisis it caused,” said AIC President and CEO Drew Maloney. “By supporting more than 1,000 businesses with critical capital and industry expertise, private equity is standing by its portfolio companies during this pandemic. This is another important data point to illustrate how private equity supports its investments and millions of workers employed by our industry across America.”
The following graphic displays private equity’s investment per sector in Q1 2020:
The top three deals by value in Q1 2020 all occurred in mid-to-early March, just as the American economy began to shut down to minimize the public health damage of the pandemic:
Digital Colony, EQT and Fisher Lynch Capital partnered to invest $14.3 billion in Colorado-based Information Technology company Zayo in early-March in the largest deal of 2020 to-date.
The Canada Pension Plan Investment Board acquired California and Texas-based Pattern Energy Group for $6.74 billion in mid-March in the second largest deal in 2020 to-date.
AIC member Blackstone Real Estate Income Trust partnered with MGM Growth Partners to invest $4.6 billion in Nevada-based MGM Grand Vegas and Mandalay Bay Real Estate in mid-March in the third largest deal of 2020 to-date.