A new report from the American Investment Council and Ernst & Young examines the impact of private equity investments on the economy.
Nationally, private equity directly employed 13.3 million workers, up from 12 million in 2022. Further, workers at private equity-backed businesses earned an average salary of $85,000 last year, a roughly 6 percent increase from 2022.
Overall, the private equity sector contributed $2 trillion to gross domestic product (GDP) in 2024 and now represents approximately 7 percent of total U.S. GDP.
Further, when factoring in private equity’s suppliers and related consumer spending, it supported an additional 20.1 million workers and added $2.7 trillion to U.S. GDP in 2024.
“The numbers in this report tell a clear story: Private equity is an engine of opportunity in America,” AIC President and CEO Drew Maloney said. “We are invested in the success of communities across the country. Whether helping small businesses grow, paying workers competitive wages, or strengthening entire industries, private equity is making a real difference in people’s lives.”
Among other key stats, the report found that private equity supports small businesses as the median private equity-backed business employed just 72 workers. Approximately 85 percent of PE-backed businesses were small businesses that employed fewer than 500 workers. Further, private equity contributed $337 billion in federal, state, and local taxes. Approximately two-thirds, or $233 billion, were federal taxes, with the remainder, about $114 billion, paid to state and local governments. These tax contributions amount to about 5 percent of all federal tax revenue, as well as 5 percent of all state and local tax revenue.
In addition to the national impact of private equity investments, the report outlines detailed statistics for all 50 states on jobs, wages and benefits, and GDP.