Report touts private equity role in supporting consumer brands

The private investment industry advocacy organization American Investment Council (AIC) and PitchBook recently released a report espousing the benefits of private equity’s (PE) role in supporting various consumer brands.

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“Of all the sectors in which private equity invests, the consumer industry might be the most familiar to the industry,” AIC and PitchBook wrote in the report’s executive summary. “PE seeks to improve businesses by unlocking their value and setting them up for long-term success. In countless cases across several decades, PE firms have helped revive brands that fell out of favor with consumers and have infused emerging brands with capital and know-how to bring them to the next level.”

According to the report, restaurant chains, salons, and consumer companies have received emergency capital from PE sponsors, which also aid consumer brands by introducing operating partners to advise companies on varied situations.

“Private equity investments play a critical role reviving brands struggling to meet changing consumer expectations while also infusing emerging brands with capital to elevate them to the next level,” AIC President and CEO Drew Maloney said. “These investments crucially allow these brands and businesses to grow and hire more people.”

According to the AIC and PitchBook, private equity has partnered with over 8,000 consumer brands ranging from restaurants to beauty products. PE has provided large-scale investments to improve businesses by unlocking their value and establishing a pathway to continued success.