Private Capital Helping Small- and Mid-Sized Businesses Grow

Private capital, including private equity, plays a critical role in helping small- and mid-sized businesses grow and create jobs. In a recent blog post, the Association for Corporate Growth (ACG) highlighted that ADP payroll data estimates that from 2005 to 2013, small- and mid-sized businesses generated a combined 3.6 million jobs.

This is in large part thanks to private capital, which has helped small- and mid-sized businesses across America grow and become more valuable. According to data from, the ACG post notes, data from 1995 and 2009 reveals that:

  • “Private capital-backed companies grew jobs by 81.5%, while all other companies in the U.S. economy grew jobs by 11.7%
  • “Private capital-backed companies grew sales by 132.8%, while all other companies in the U.S. economy grew sales by 28.0%
  • “Middle-market private capital-backed companies created more than twice the amount of new jobs (339,909) than any other employment stage
  • “Private capital-backed companies had more annual relative growth every year except one when compared to the general U.S. economy”


“Given that middle-market businesses backed by private capital investment firms so dramatically outperform other similar size companies,” asks the blog’s author, “should we not support public policy that encourages these investors to provide this critical source of growth capital?”

For examples of small- and mid-sized businesses that have grown and succeeded thanks to private equity investment, see our “Success Stories” page here.