Small businesses are the lifeblood of local communities. In 2022 alone, 85 percent of all private equity investments went to support small businesses with fewer than 500 employees. These investments played a critical role in ensuring small businesses are making a resilient comeback after the challenges faced from the COVID-19 pandemic.
Small businesses enrich our cities and towns with culinary delights, life altering medical technologies, fresh ideas, and disruptive thinking. They also serve as ladders for socioeconomic mobility, allowing anyone with a good idea, hard work, and a bit of luck to achieve the American dream. But many Americans may not know that thousands of these success stories depend on private equity investments to ensure they can serve their neighborhoods.
Click here to see how many private equity-backed small businesses are in each state.
Watch below to hear real entrepreneurs share how private equity provides opportunity and growth through investment and expertise.
Sunshine Beverages – North Carolina
Sunshine Beverages is a fast-growing energy drink manufacturer aiming to redefine the market with healthier, natural ingredients. Private equity has helped this Winston-Salem, North Carolina-based company grow its distribution network, establish key grocery chain partnerships, and continue to deliver on its promise of great taste, no artificial flavors, and lower sugar.
Anthos Therapeutics – Massachusetts
Anthos Therapeutics is a Massachusetts-based biopharmaceutical company conducting late-stage clinical trials on an exciting new drug that has the potential to prevent blood clots, which lead to strokes, heart attacks, and are responsible for 1 in 4 deaths in the United States. “Without the backing of private equity, this kind of drug at this stage of development would sit on the shelf and wouldn’t be possible,” said CEO John Glasspool.
The Pad – Colorado
Based in Silverthorne, Colorado, The Pad offers a unique lodging experience for outdoor enthusiasts and adventure seekers. This boutique hotel and hostel sought out a private equity investment to develop a 36-room lodge that accommodates every traveler’s budget, featuring a bar, rooftop, and business center.
RVshare – Ohio
RVshare is the first and largest peer-to-peer RV rental marketplace that helps more than 60,000 RV owners across the US rent and lease their RVs. When RVshare partnered with private equity, the company capitalized on the investment by bolstering staff and scaling its business through strategic marketing campaigns. With enhanced infrastructure and a modernized digital presence, RVshare expanded across the country and now operates rentals in all 50 states.
Inland Coatings – Iowa
Inland Coatings is an industrial coating manufacturer in Adel, Iowa, and an example of a successful partnership between private equity and a rural Iowa company. Since Midwest Growth Partners invested in this family business in 2014, Inland Coatings has grown into an industry leader throughout North America. This growth also allowed the company to offer healthcare and retirement benefits to employees.
Black Rock Coffee – Oregon
Like many other food service businesses, Black Rock Coffee struggled to adapt and survive the COVID-19 pandemic. Fortunately, Black Rock Coffee had a committed private equity partner who provided critical capital and expertise to help the business weather the pandemic. According to CEO Jeff Hernandez, “(Private equity) stuck with us … They saw that connection our customers have to our brand and our baristas was almost unshakeable and they followed through and made that investment.”
