American Investment Council examines private equity impact

The American Investment Council (AIC) maintains private equity is strengthening small businesses while adding resiliency and supporting millions of jobs.

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According to its newly released information packet, the AIC indicated the private equity industry directly employed 11.7 million American workers; paid annual average annual salaries of approximately $73,000; committed 86 percent of all investments to small businesses with 500 workers or fewer; and paid $218 billion in federal, state and local taxes.

Additionally, the AIC noted the last two years have determined private equity raised $200 billion for infrastructure projects. Last year renewable energy private equity investment rose to $23.7 billion, representing a $5 billion increase from the prior year. Private equity has invested over $100 billion in green energy over the past 10 years, according to the analysis.

The AIC said that private equity firms earmarked more than $79 billion last year to fund research focusing on diseases, renovating medical facilities, and modernizing healthcare data concerning domestic healthcare.

Returns from private equity investments aid in supporting public pension recipients nationwide, according to the AIC. Private equity represents the best performing asset class for public pensions, providing annualized return of 12.30 percent over a 10-year period.