As the 2020 presidential election unfolds, the AIC is highlighting private equity’s positive economic impact in early primary and caucus states. With voters in Texas and 13 other states going to the polls on Super Tuesday, a new American Investment Council video series highlights successful private equity partnerships in the Lone Star State.
Private equity has spurred economic development and growth throughout the state of Texas. Businesses of all sizes, across a variety of sectors, have partnered with private equity to scale and achieve their business goals. A recent EY report confirmed the positive impacts in the Lone Star State; private equity backed 703,000 jobs and generated $91 billion in economic value last year. In 2018, private equity delivered a 11.10 percent return for the Houston Firefighters’ Relief and Retirement Fund (HFRRF), which was the 7th highest private equity returns of any public pension in a recent study from the American Investment Council.
RVshare is the first and largest peer-to-peer RV rental marketplace that helps more than 60,000 RV owners across the US rent and lease their RVs. When RVshare partnered with private equity through Tridion Partners, the company capitalized on the investment by bolstering staff and scaling its business through strategic marketing campaigns. With enhanced infrastructure and a modernized digital presence, RVshare expanded across the country and now operates rentals in all 50 states.
Among the litany of technology companies flourishing in Austin, Storable has emerged as a leader and an innovator. Storable provides software solutions and task management tools for self-storage operators across the U.S. In 2018, the company partnered with private equity through Cove Hill Partners, which allowed it to bolster its software capabilities, diversify its suite of products, and improve the customer experience on both the operator and tenant sides of the self-storage business.
Founded in 1999, rateGenius is an automobile financing service that works with over 150 lending institutions to find customers the best available auto loan rates. Since rateGenius partnered with private equity, the company has been able to streamline and improve its online customer experience. In turn, rateGenius successfully revamped its customer journey while growing its customer base and fortifying the company’s core capabilities.
Support from private equity firms have helped these Texan businesses bolster the local economy and provide greater services to their communities. Across the United States, the private equity industry accounts for 5% of GDP and supports more than 26 million jobs.