AIC’s Maloney Talks Taxes, the Election, & Pro-Growth Investment with Preqin
Maloney: “Our industry supports jobs, small businesses, and innovations that improve lives.”
WASHINGTON, D.C. – This week, Preqin published a Q&A with AIC President & CEO Drew Maloney discussing how private capital is driving U.S. economic growth and investment and supporting small businesses in communities across the country.
Speaking with Grant Murgatroyd, Preqin’s Head of News, and Shaun Beaney, Editor of Preqin First Close, Maloney highlighted how private equity and private credit bridge critical gaps in financing for businesses, and emphasized how policymakers on both sides of the aisle need to support regulation that allows private capital to continue growing jobs, supporting small businesses, and powering innovation.
Read the full interview here. Key excerpts from the discussion are below.
On private equity’s impact on American jobs and communities – Maloney: “Private equity directly supports about 12 million American jobs. 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. In addition, private equity jobs are at higher average wages and provide excellent benefits.”
On policy priorities following the election – Maloney: “Our top policy priority under the next administration and the next Congress is economic growth and ensuring that tax policy does not hinder investment across America. The Tax Cuts and Jobs Act will expire next year, which could affect the industry. We work with policymakers on both sides of the aisle in Congress to educate them about what private equity provides in their communities, the number of jobs it supports, and the capital flows necessary to build businesses. So, no matter who wins this election, next year will be very busy for the private equity and private credit industry.”
On the role of private credit in supporting economic growth – Maloney: “It’s filling a huge gap out there, where there may be too much risk for banks and small businesses don’t have access to capital. Private credit is stepping in and providing that needed capital, which will be essential as we go forward under any administration for creating economic growth.”
On tax policy and private investment – Maloney: “Private equity is a significant taxpayer. In 2022, the industry paid more than $300bn in federal, state, and local taxes. What’s often misunderstood about the industry is that we’re buying and selling the companies in five to seven years and generating tax revenue during that time, whereas if you buy and hold, you’re not generating that type of tax revenue. It’s critical for economic growth to ensure that the tax policies are correct and you’re not being punitive with certain industries. We will be very engaged with lawmakers as they debate tax reform in 2025 to ensure they don’t discourage private investment.”
On private capital’s influence on investment in the United States – Maloney: “The U.S. is the beacon of global investment. Our rule of law and history of embracing economic growth and private capital are unique. And that’s why you continue to see the U.S. be a huge draw for foreign capital, economic growth, and innovation. That’s why dollars continue to be invested in the U.S.”
