After EY and the American Investment Council (AIC) released a new report demonstrating the significant and positive role America’s private equity industry plays in growing our economy, AIC’s President and CEO Drew Maloney recently joined Bloomberg Radio’s Jason Kelly and Carol Massar on “Bloomberg Businessweek” to discuss the report’s findings and other private equity-related news.
- Maloney explained that the EY report finds that “Private equity supports more than 26 million U.S. jobs. And, if you look at that and you break it down, it’s 8.8 million in direct jobs. And then we also looked at the indirect jobs and related consumer spending – and if you add that up, it’s gets you another 17 million jobs.”
- The EY report also “shows a diversity of investment,” Maloney said. “We’re investing in everything from personal services, business services, manufacturing, information, construction – we invest across the entire economy. And I think that’s a very important point,” he continued. And, when it comes to “the federal, state [and local] tax revenue numbers that [the private equity industry is] contributing” throughout the nation, Maloney explains, EY finds that private equity plays a vital role in the tax base of our states and local communities – supporting important investments in schools, transportation, infrastructure and other key priorities.
- “If you look at the rest of the study, when you’re … taking private companies … and you’re selling them private-to-private, you saw job gains. And the other interesting aspect of it – even with those big, large public companies that needed to be restructured, you saw 8% productivity gains once they were owned by private equity,” Maloney said.
Senator Warren’s “Stop Wall Street Looting Act”:
- “[T]he concern about [Senator Warren’s] plan is that it would hurt jobs, workers and retirees. And, I think, as that Harvard study you referenced said, one-size-fits-all legislation doesn’t work for private equity because of the diversity of our investment,” Maloney explained.
To listen to Drew Maloney’s full “Bloomberg Businessweek” interview, CLICK HERE.
To read the full EY report, CLICK HERE.