AIC Year in Review: Private Investment Supports Workers, Jobs, & Small Businesses Throughout 2024
AIC Advocacy Included In-State Policymaker Panels, Portfolio Company Profiles, and Successful Litigation
WASHINGTON, D.C. – Private investment played a crucial role in bolstering the U.S. economy in 2024, driving job growth, supporting American workers, and providing capital to fuel small businesses across key industries. The American Investment Council (AIC) is proud to have spent the year highlighting these positive trends and sharing the stories of those who have benefited from private capital.
Let’s look back at some of AIC’s key moments in 2024:
Supporting American Workers
Private equity firms are committed to supporting American workers through strong wages, professional development, and benefits. Many firms have partnered with Ownership Works, a nonprofit initiative that expands employee ownership in companies. In March, AIC released a video showcasing how AIC member The Riverside Company’s portfolio businesses are implementing shared ownership programs that give workers a direct stake in their company’s success.
Private equity continued to deliver strong returns for American workers’ retirement savings. AIC’s 2024 public pension study found that private equity delivered a median annualized return of 15.2 percent over a 10-year period, outperforming all other asset classes in public pension portfolios since 2012. The study shows not just that “private equity delivers the best returns, but that it brings diversification,” AIC President & CEO Drew Maloney told the Chief Investment Officer in an interview.
Private equity continued to be a significant driver of job creation and economic expansion, generating a net increase of four jobs per 100 full-time employees. This outpaced the median public company, which created only one net new job per 100 full-time employees.
Strengthening Small Businesses
The vast majority (85%) of private equity investments go to businesses with fewer than 500 employees. A joint report from AIC and PitchBook released in May highlighted the increasing reliance of small and middle-market businesses on private credit for financing. This market has grown from $400 billion to $1 trillion in assets over the past decade, supporting over 3,600 American businesses. Maloney discussed this transition in an op-ed in RealClearMarkets, highlighting the danger overregulation poses to the private credit industry.
AIC championed the impact of private equity on small businesses throughout the year. AIC launched digital and out-of-home advertisements across Washington, D.C., including an advertising campaign at Ronald Reagan Washington National Airport during National Small Business Week. AIC also conducted nationwide press tours sharing success stories of regional businesses.
AIC held events such as the Congressional Black Caucus Foundation conference and two Punchbowl News events in Charlotte and Atlanta, where speakers like Senator Thom Tillis, Governor Brian Kemp, and representatives from Zaxby’s and Charlotte Radiology emphasized the benefits of private investment for small businesses. Charlotte Radiology’s success was further highlighted in an AIC video and an op-ed in PE Hub by AIC Board Chair Pam Hendrickson.
AIC was proud to join five other industry groups in a successful lawsuit to push back on harmful overreach from the Securities and Exchange Commission (SEC) that would have added unnecessary burdens to the thousands of businesses that depend on private equity and credit across America.
Driving the American Economy & Innovation
Private investment continued to provide capital and expertise to companies at the forefront of American innovation, driving competitiveness and strengthening the U.S. economy.
AIC released a video highlighting private equity’s role in startup development. An AIC report released in March, in partnership with PitchBook, highlighted private equity’s significant investments in American manufacturing, with nearly 1,000 manufacturers receiving new investments annually, reaching approximately $100 billion. In September, a PitchBook report spotlighted how private equity has helped small and midsize companies navigate a challenging economic environment.
The AIC also worked to raise awareness in Washington about the vital role of private credit in the US economy. AIC, whose members represent two-thirds of all private credit assets under management, launched a quarterly private credit trends report to keep industry and policymakers informed.
Looking Ahead
2024 has been a strong year for private investment and its positive impact on workers, businesses, and industries across the country. AIC looks forward to working with the incoming Trump administration and Congress to maintain a supportive regulatory environment for private investment in the year ahead.
