Small Business

Private Equity on Pace to Invest Over $1 Trillion in U.S. Economy in 2021

AIC’s New Q3 Investment Report reveals over 80% of private equity investment supported small businesses in 2021

For the first time in history, private equity is on track to invest more than $1 trillion in American businesses over the course of a single calendar year, according to the American Investment Council’s 2021 Q3 Investment Trends Report released today. Through the end of the third quarter, private equity has invested $788 billion in 4,806 businesses across the United States. The amount invested represents an 86 percent increase from the same period in 2020.

“Today’s report confirms that private equity has been a critical partner to help businesses of all shapes and sizes as the American economy recovers from the COVID-19 pandemic,” said AIC President and CEO Drew Maloney. “Private equity is a particularly critical partner for small businesses that need the capital and expertise to survive and grow. The industry’s continued growth is a testament to the strength of these partnerships and private equity’s critical role in powering the American economy.”

In advance of Small Business Saturday, the AIC report confirms that private equity continues to play a critical role supporting small businesses with less than 500 workers. More than 4,000 small businesses have received private equity investments this year— representing 84 percent of the 4,806 businesses that received private equity funding during the first three quarters of 2021.

The AIC released a new video celebrating private equity’s commitment to small businesses across the country.

Small businesses backed by private equity: