Bulk of Private Equity Investment Concentrated in Business and Consumer Products, and Information Technology
WASHINGTON – In 2017, the U.S. private equity industry raised record high levels of callable capital, but investment dipped compared to the previous year in all sectors except for healthcare, according to the American Investment Council’s (AIC) 2017 Q4 Industry Investment Report, released today.
Nearly two thirds of the total amount of U.S. private equity investment in 2017 was invested in three sectors of the economy. Business Products & Services (B2B) attracted $148 billion in investment, followed by Consumer Products & Services (B2C) and Information Technology, with $99 and $94 billion, respectively. The health care sector also attracted a significant amount of investment, $83 billion, up from $72 billion in 2016. Energy, Financial Services, and Materials and Resources collectively received $118 billion in investment.
“Private equity investment reaches every state across the country, driving long-term growth across companies of all sizes, creating jobs, and delivering strong returns for workers’ pension funds,” said AIC President and CEO Mike Sommers. “Our new report also demonstrates how the private equity industry is making critical investments in the services that businesses need, the products that customers want, and the information technology that people across our country have come to rely on every day.”
While the overall level of investment is down from $646 billion in 2016, the number of deals remained roughly in line with deals and investment volumes seen in previous years.
“Healthcare recorded the highest increase in investment year over year despite some uncertainty in the industry,” said AIC Vice President of Research and Investor Relations Bronwyn Bailey. “With aggregate capital fundraising at record levels, private equity has the means to fund significant projects in key sectors of our economy.”
Industries included in the report are as follows: Consumer Products and Services; Business Products and Services; Financial Services; Information and Technology; Healthcare; Energy; and Materials and Resources. Read the full report here.