The American Investment Council (AIC) released a new report examining the key role that private equity plays for small and mid-sized businesses.
The report, using data from PitchBook, showed that private equity has invested in more than 21,000 businesses in 2025, with 85 percent of the investments supporting businesses with less than 500 employees.
In 2024, according to the report, $654.1 billion in private equity was invested in small and mid-sized businesses, up more than $100 billion from the previous year.
“Private equity is a steadfast partner for America’s small and mid-sized businesses, providing the capital, expertise, and strategic guidance necessary to thrive in today’s changing economy,” AIC President and CEO Will Dunham said. “Our new report showcases how private equity investments helped an advanced manufacturer open a new factory in Houston, a Pennsylvania-based health manufacturer grow as an independent business, and a fintech platform grow its customer-based nearly seven-fold through a strategic acquisition.”
With small and mid-sized businesses struggling to obtain loans amid tightening lending standards, the report said that private equity is helping to fill a funding gap by providing capital to small businesses. These loans often support acquisitions, the opening of new production facilities, or the creation of new jobs.
Further, as the U.S. economy experiences the reworking of supply chains and import partners, private equity is providing logistical support for smaller and midsized businesses to weather this period of trade uncertainty.
In addition, private equity is facilitating smooth transitions by ensuring the continuity of these businesses and preserving jobs within communities.