Investment by the private equity industry dropped in 2017 even though the industry raised record levels of capital last year, according to the American Investment Council’s (AIC) 2017 Q4 Industry Investment Report.
Private equity investment totaled $542 billion last year, down 16 percent from $646 billion in 2016.
The sector that attracted the most investment was Business Products & Services (B2B), which attracted $148 billion, followed by Consumer Products & Services (B2C) and Information Technology, with $99 and $94 billion, respectively. The only sector that saw an increase in investment last year was Health Care, which attracted $83 billion, up from $72 billion in 2016. The remaining sectors — Energy, Financial Services, and Materials and Resources — received $118 billion in investment combined.
“Private equity investment reaches every state across the country, driving long-term growth across companies of all sizes, creating jobs, and delivering strong returns for workers’ pension funds,” AIC President and CEO Mike Sommers said. “Our new report also demonstrates how the private equity industry is making critical investments in the services that businesses need, the products that customers want, and the information technology that people across our country have come to rely on every day.”
While investment was down, the number of deals remained about the same as the previous year.
“With aggregate capital fundraising at record levels, private equity has the means to fund significant projects in key sectors of our economy,” AIC Vice President of Research and Investor Relations Bronwyn Bailey.