Drew Maloney, President and CEO of American Investment Council (AIC), said private equity has a major impact on American jobs and communities, as well as provides support for local small businesses. 

“Private equity directly supports about 12 million American jobs,” Maloney said in a press release. “And 85% of our private equity dollars go to help small businesses.”

“In any town you visit across the country, you will be surrounded by local employers, dependent on private capital to grow and expand their businesses,” he said. “In addition, private equity jobs are at higher average wages and provide excellent benefits.” 

Small and Medium-sized Enterprises (SMEs) employ approximately 60 million people across the country, which represents nearly 50% of the U.S. workforce. SMEs are defined as businesses with fewer than 500 employees, according to the U.S. Small Business Administration (SBA).

According to the SBA, SMEs contribute significantly to the U.S. economy, accounting for around 44% of U.S. GDP. These businesses play a pivotal role in driving economic growth, innovation, and job creation across various sectors.

Studies conducted by the American Investment Council (AIC) have shown that private equity-backed firms tend to offer higher wages compared to their non-private equity counterparts. Private equity-backed companies often implement performance-based compensation models, leading to higher overall pay for employees. Additionally, according to the reports, these firms generally provide comprehensive benefits, further adding to the total compensation package for workers.

Drew Maloney is the President and CEO of the American Investment Council (AIC), an advocacy and research organization representing the private equity and private credit industry in the United States. The AIC’s goal is to engage with policymakers, stakeholders, and the public to advance a better understanding of private equity’s contributions to the U.S. economy, particularly through its support of small and medium-sized enterprises.