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: 

Sunshine Beverages

Sunshine Beverages is a fast-growing energy drink manufacturer aiming to redefine the market with healthier, natural ingredients. Private equity has helped this Winston-Salem, North Carolina-based company grow its distribution network, establish key grocery chain partnerships, and continue to deliver on its promise of great taste, no artificial flavors, and lower sugar.

The Pad

Based in Silverthorne, Colorado, The Pad offers a unique lodging experience for outdoor enthusiasts and adventure seekers. This boutique hotel and hostel sought out a private equity investment to develop a 36-room lodge that accommodates every traveler’s budget, featuring a bar, rooftop, and business center.

RVshare

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 partneredwith 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.

Inland Coatings

Inland Coatings is an industrial coating manufacturer in Adel, Iowa, and an example of a successful partnership between private equity and a rural Iowa company. Since Midwest Growth Partners invested in this family business in 2014, Inland Coatings has grown into an industry leader throughout North America. This growth also allowed the company to offer healthcare and retirement benefits to employees