The American Investment Council (AIC) and the National Association of Investment Companies (NAIC) released a new report on the role that private capital plays in fueling economic growth.
The report, America at 250: How Private Capital Fuels American Dynamism,” details how private equity investment has supported job creation, manufacturing, infrastructure, and innovation.
“From financing early merchants to backing the technologies that define the modern economy, private capital has always been integral to our nation’s vitality and dynamism,” AIC President and CEO Will Dunham said. “The drive to build, innovate, and take smart risks has not only fueled America’s success but embodies its spirit. As this report shows, the private investment industry continues to power the jobs, businesses, and communities that will ensure America’s economic growth and global competitiveness well into the future.”
The report features some key findings about how private equity has impacted the economy. Among them, the report found that:
- More than 13,000 U.S. businesses are backed by private equity across every sector of the economy.
- 85 percent of private equity-backed businesses are small businesses.
- 13.3 million workers are employed by the private equity sector as of 2024, and the industry supports an additional 20 million jobs indirectly, paying $1 trillion in wages and benefits annually.
- $85,000 in wages and benefits earned by average private equity worker, well more than the national average.
- 34 million public sector workers in the U.S. depend on private equity’s strong returns to support the pensions that secure their retirements.
- More than 50,000 investments into American businesses have been made by private equity since 2020.
“For generations, private capital has helped transform bold ideas into thriving businesses, creating jobs, strengthening industries, and driving American prosperity,” Robert Greene, president & CEO of the National Association of Investment Companies, said. “Diverse and emerging fund managers are extending that legacy by investing in entrepreneurs, underserved markets, and companies with tremendous growth potential that might otherwise be overlooked. Their success demonstrates that expanding opportunity and delivering strong returns are mutually reinforcing—and essential to maintaining America’s economic leadership.”
The report also showcases several examples that illustrate the difference private capital can make in driving economic development. One example is the New Terminal One at JFK Airport, a $9.5 billion redevelopment project in New York City backed by a private-public partnership. It is expected to create approximately 10,000 jobs. When fully complete, the New Terminal One will feature 23 gates, large light-filled check-in and arrivals halls, modern security and customs facilities, modernizing one of the nation’s most important transportation hubs.
The report also features a timeline tracing some of the most significant milestones in the history of private capital investment in America.