The State of the Union: Private Investment Drives Growth, Fuels Jobs, and Strengthens American Retirements
WASHINGTON, D.C. — Ahead of President Trump’s State of the Union address, the American Investment Council (AIC) is highlighting the critical role that private investment plays in driving economic growth, creating jobs, and strengthening retirement security for millions of Americans.
“From supporting small businesses to reshoring manufacturing, private equity and private credit are investing in America,” said Will Dunham, President and CEO of the American Investment Council. “The state of our union is strong when our economy and our communities are strong. Our industry is proud to support American workers not only by driving growth and creating jobs, but by securing the retirements of millions of teachers, firefighters, and other public servants.”
Private Investment Powers the Economy
In 2026, private equity and private credit continue to serve as a vital engine of job creation and economic opportunity:
- 13.3 million – The number of workers directly employed by private equity-backed companies, up from 12 million in 2022.
- $85,000 – The average earned in wages and benefits of employees at private equity-backed firms.
- 85% – The percent of private equity dollars that support companies with fewer than 500 employees, helping entrepreneurs expand, innovate, and create wealth in communities nationwide.
Private Investments Provide Retirement Security
Private equity’s long-term performance remains a cornerstone of retirement security for millions of workers and public servants:
- 13.5% – The private equity median annualized return over a 10-year period, even after fees, is higher than all other asset classes, including public markets and fixed income.
- 34 million – The number of U.S. public sector workers who depend on private equity to secure their retirements.
- 89% – The share of public pension funds nationwide that invest a portion of their portfolio in private equity.
A recent AIC report highlighted that private equity outperforms public markets and other asset classes over 5-, 10-, 15-, and 20-year periods, even after fees are taken into account. This consistency can help everyday savers build their retirement savings over the course of decades.
Expanding Access for Everyday Investors
AIC supports the Trump administration’s efforts to expand access to private investments for all Americans. Private investments aren’t new to the retirement space; they’ve helped secure the pensions of more than 34 million teachers, firefighters, and public workers for decades. Expanding these opportunities is key to enhancing diversification, improving potential returns in retirement accounts, and offering more choices for families planning their financial futures. You can learn more about the benefits of democratizing 401(k)s here.
