NEW REPORT: Private Equity Investments Boost Small & Mid-Market Businesses
Dunham: “Private equity is a steadfast partner for America’s small and mid-sized businesses, providing the capital, expertise, and strategic guidance necessary to thrive in today’s changing economy.”
Washington, D.C. – Today, the American Investment Council released a new report using data from PitchBook examining how private equity is a crucial partner for small and mid-sized businesses across the U.S. Private equity has invested in the long-term growth of more than 21,000 businesses in 2025, with 85% of these investments supporting businesses with less than 500 employees.
- “Private equity is a steadfast partner for America’s small and mid-sized businesses, providing the capital, expertise, and strategic guidance necessary to thrive in today’s changing economy,” said AIC President and CEO Will Dunham. “Our new report showcases how private equity investments helped an advanced manufacturer open a new factory in Houston, a Pennsylvania-based health manufacturer grow as an independent business, and a fintech platform grow its customer-based nearly seven-fold through a strategic acquisition.”
Providing Capital and Loans to Grow and Create Jobs: With small and mid-sized businesses struggling to obtain loans amid tightening lending standards from banks, private equity is helping to fill a funding gap by providing capital to small businesses looking to grow and maintain operations. These loans often support acquisitions, the opening of new production facilities, or the creation of new jobs.
Helping Business Navigate Economic Uncertainty: As the U.S. economy experiences the reworking of supply chains and import partners, private equity is providing logistical know-how for smaller and midsized businesses to weather this period of trade uncertainty and maintain access to supply chains and foreign customer bases.
Ensuring Businesses Grow and Maintain Jobs as Founders Retire: With Baby Boomers owning a substantial portion of small businesses and many approaching retirement, private equity is facilitating smooth transitions by ensuring the continuity of these businesses and preserving jobs within communities.
By the Numbers:
- 4,949 – Thenumber of small and mid-sized businesses supported by private equity in 2024, which grew by more than 200 from the previous year to $654.1 billion.
- $654.1 billion – The amount private equity invested in small and mid-sized businesses in 2024, which grew by more than $100 billion from the previous year.
The report includes a selection of case studies profiling several small- and mid-sized businesses that have benefited from private equity investments:
- Fueling advanced manufacturing growth in Houston: Continuum Powders, a producer of recycled metal alloys for aerospace and industrial use, secured a private equity investment to open a new Houston facility and expand operations. The company has since partnered with global manufacturer Renishaw to supply materials for its next-generation machines, reflecting a broader trend of private equity backing mature industrial innovators for long-term growth.
- Supporting the growth of a Pennsylvania-based health manufacturer as an independent business: Formerly a division of publicly traded ProPhase Labs, Pharmaloz specializes in developing, producing, and packaging supplements, including dietary supplements and lozenges. Pharmaloz was acquired by private equity in early 2025, reflecting a growing trend of the industry helping divisions of public companies grow as independent businesses. As part of the deal, the new owner will fund approximately $3 million in upcoming production investments.
- Scaling a Washington state fintech platform through strategic acquisition: Finagraph is a financial data collection and business intelligence platform that serves accounting firms. Originally backed by venture capital, Finagraph partnered with private equity for capital and strategic counsel to sustain steady, long-term growth through a targeted acquisition. The combined company post-merger is now estimated to serve more than 750 CPA firm customers, up from just 100 before the private equity partnership.
To learn more about how private equity empowers small- and medium-sized businesses, read the full report.
