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Private Equity Investments Boost Workers, Benefit Communities Across United States

Private equity creates jobs, supports employee benefits in all 50 states and 435 congressional districts.

  • A recent analysis of PitchBook data shows the direct impact private investment is having across the country—in all 50 states and 435 congressional districts.
 
  • In 2020, businesses across the United States with private equity investments employed 11.7 million workers who earned $900 billion in wages and benefits.
 
  • In 2022, 62% of all private equity investments went toward supporting small businesses with less than 500 employees.
 
  • Private equity investments enable businesses to invest in their people offering competitive employee benefits, like increased 401(k) contributions, lower health care costs, and expanded parental leave policies.
 

Did you catch the American Investment Council’s latest ad series in POLITICO? In case you missed it, an analysis of PitchBook data from 2017-2022 shows that private equity’s impact is felt in each and every community in the country. Here are the highlights:

  • Private equity invested in more than 1,200 businesses in districts represented by the 75 new members of the House of Representatives.
 
  • Private equity invested more than $38 billion in the states represented by the seven new members of the Senate.
 

Private equity investments are a big win for workers, offering reliable pay and enhanced benefits to millions of Americans:

  • At companies with private equity investments, the average employee made $73,000 in wages and benefits in 2020 – or, roughly $38 per hour for a full-time worker.
 
  • Private equity investments equip businesses to invest more in the benefits that improve employees’ lives, like better retirement savings plans, expanded health care options, and increased parental leave support.
 

Human resources leaders at private-equity backed businesses agree – private investment works to benefit employees at companies of all sizes:

  • With the support of private equity our employees have access to far more resources and benefits,” said Loc Performance Vice President of Human Resources Margee Kaczmarek. “We’ve been able to offer employee benefits that are tailored specifically for their jobs and lives, and that would not be possible without the capital and network that private equity provides.”
 
  • Private equity partnered with us to allow us to save 10% on our medical plan, which we were able to repurpose for our new parental leave policy for our employees,” said UNISON Vice President of Talent Management Raelene Wagoner.
 
  • “I wasn’t expecting the amount of investment up front in people, in process, in tools—and my opinion’s been changed about what private equity brings,” said CNSI Executive Vice President and Chief People Officer Kelly Schlageter.
 

The bottom line

Private equity investments create jobs for millions of Americans and enhance employee benefits nationwide. These individuals have reliable, well-paying jobs that help build communities and strengthen our national economy.

Read More About How Private Investment Works