OUR THOUGHTS ON:

Does Private Equity Provide Growth?

Business Advisors

By Joel Rosenthal

According to the Association for Corporate Growth (ACG) and the Edward Lowe Foundation, private equity drives growth in sales and jobs. The two organizations have combines resources to launch growtheeconomy.org, whose genesis is the combination of two databases that can compare sales and job growth by private capital-based companies to the U.S. economy.

The following was noted in ACG’s April 26, 2012 press release (Sampling from 1995-2009): 

  • Private capital-backed companies grew jobs by 81.5%, while all other companies in the U.S. economy grew jobs by 11.7%
  • Private capital-backed companies grew sales by 132.8%, while all other companies in the U.S. economy grew sales by 28.0%
  • Middle-market private capital-backed companies created more than twice the amount of new jobs (339,909) than any other employment period.
  • Private capital-backed companies had more annual relative growth every year except one, when compared to the general U.S. economy

Information can be sorted by parameters, including location and size.  These results are impressive findings and can shed light on the benefits of private equity.

For additional information, please contact Joel Rosenthal at 412-697-5387 or jrosenthal@schneiderdowns.com.

 © 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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