PE is an important tool for driving growth and improving performance at thousands of companies across the country and around the world. To succeed today, a PE firm needs to bring much more to the table than financial creativity. The best private equity firms deliver deep expertise in the sector in which the investment is being made; a performance culture that rewards entrepreneurialism and results; managerial and functional capabilities (IT, for example); and an ownership structure that enables companies to compete in the toughest environments.
Private equity can be seen throughout the economy: companies backed by private equity employ more than 8 million Americans, which makes up over 5 percent of the workforce. As a vital source of capital investment in the U.S. and global economies, private equity helps to strengthen American companies and better position them for long-term success. These improvements have a positive impact on employment. Stronger and more competitive companies provide employees with significant benefits, including greater job security, better compensation and more opportunities for career advancement.
Private equity firms invested $144 billion in more than 1,700 U.S. based companies in 2011. These companies employ more than eight million people. And the value of PE-backed IPOs since 2001 is well over a trillion dollars. The direct investments made by private equity firms have a multiplier effect as the companies in which they invest hire workers, invest in R&D and pursue new innovations and products. In short, private equity investment drives significant economic activity and growth across the U.S. economy.
To find out more about how private equity investment grows companies, jobs and the economy, click here.