U.S. Private Equity Supporting Economic Recovery
Supporters of the U.S. private equity industry received added fuel for their fire today with the publication of a new report by lobby group the American Investment Council.
Helping Drive The Economic Recovery: How private equity is responding to the Covid-19 crisis uses data from Pitchbook to look at deal activity from 116 U.S.-based private equity firms which invest predominantly in distressed companies, bankruptcies, special situations, or turnarounds. The report points to an uptick in turnaround deal activity since the beginning of the summer, and says that record turnaround fundraising in 2019 has positioned the U.S. private equity industry to support the broader U.S. economy as it emerges from its economic retreat.
“Private equity continues to invest in communities across America and support workers, businesses, and public servants impacted by COVID,” said Drew Maloney, President and CEO of the American Investment Council. “The latest job numbers from the Department of Labor show how much more work needs to be done to strengthen businesses and spur economic growth. Private equity firms look forward to working with the new Administration and Congress to support struggling businesses across the country and help fuel the post-COVID economic recovery.”
The AIC says that private equity supports 5% of the USA’s GDP and has a total economic impact above $1.1trn, directly employing 8.8 million Americans across all 50 states.
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