Mid Year Report: Private Equity Invests in Small Business Amidst Ongoing Economic Uncertainty Caused by COVID-19
Washington, D.C. – Today, the American Investment Council (AIC) released its 2020 Midyear Investment Report, detailing the private equity industry’s deal activity during the first six months of this year.
The data show private equity firms are continuing to invest in all sectors despite a global pandemic and economic uncertainty. In the first half of 2020, private equity committed $252 billion to 1,847 companies in the United States. 718 were small businesses with less than 500 employees.
The report also breaks down private equity investment by sector:
- Information technology: $69 Billion
- Business products and services: $68 Billion
- Consumer products and services: $34 Billion
- Healthcare: $26 Billion
- Energy: $26 Billion
- Financial Services: $25 Billion
- Materials and resources: $4 Billion
Private equity-backed businesses create jobs and opportunity in communities across the country. Some examples include:
- RVshare, the first and largest peer-to-peer RV rental marketplace, based in Austin, TX, is helping more than 60,000 RV owners across the US rent and lease their RVs.
- Sunshine Beverages, a fast-growing beverage company based in Winston-Salem, NC, is redefining the energy drink market with healthier, natural ingredients.
- n2y, an educational software company based in Huron, OH, is empowering learning by helping individuals with special needs access the general education curriculum.
Drew Maloney, President and CEO of the American Investment Council, released the following statement:
“In the midst of great uncertainty and instability in the capital markets, private equity continues to make long-term commitments to businesses and workers in all fifty states. Private equity firms remain a reliable source of investment and a long-term partner for growth to companies of all shapes and sizes.”
The full report is available here:
