What They Are Saying: New EY Report Reveals Private Equity’s Significant & Positive Economic Impact
A new report released yesterday by EY and the American Investment Council (AIC) demonstrates the significant and positive role America’s private equity industry plays in growing our economy and creating good-paying jobs, nationwide and in key states.
The Washington Post reported that, “Private equity goes on offense,” and explained that the EY report finds that private equity “supports 26 million American jobs and 5 percent of U.S. economic activity— while paying $174 billion in federal, state and local taxes last year.”
The Wall Street Journal reports that “[t]he American Investment Council, a trade group whose members include nearly all the largest private-equity firms in the U.S., on Monday published the report detailing the industry’s job creation, tax payments and contributions to economic growth. The lobbying group also outlined the forthcoming digital advertising campaign, which it said would ‘educate Americans about the positive role private equity plays in creating jobs, driving economic growth and supporting local communities.’ … The new research from the AIC, which was prepared in tandem with consulting firm Ernst & Young LLP, aims to show the industry’s contributions to the U.S. economy last year. It said the private-equity sector directly employed 8.8 million workers who earned $600 billion in wages and benefits, and generated about 5% of the nation’s estimated $20.5 trillion gross domestic product.”
POLITICO’s Morning Money also notes the report’s finding that private equity supports “direct employment of almost 9 million workers,” and notes that AIC “is also ‘launching a substantial digital advertising campaign (high six figures) in Washington and a few key states.’ Ad Sample here. And one special for Iowa.”
While in the states…
- The Boston Globe reported that, “The American Investment Council and Ernst & Young found that the private equity industry supports companies that directly employ 8.8 million people across the country. That tallies up to 243,000 jobs in Massachusetts. The PE industry has invested in more than 900 Massachusetts-based businesses between 2013 and 2018.”
- POLITICO’s Massachusetts Playbook reports that “[t]he private equity industry supports 741,000 jobs in Massachusetts and around $1.8 billion in state and local taxes, according to a new report from Ernst & Young and the American Investment Council. The industry employs 243,000 workers in Massachusetts, who earn on average $74,000 a year in wages and benefits.”
- POLITICO’s New York Playbook reports that in “New York, the industry directly employed 609,000 workers who earned $67,000 per year in wages and benefits on average. It also paidstate and local taxes of nearly $6.1 billion in the state, second only in amount to California. AIC is launching a new website and a national digital advertising campaign to make the case for its positive influence.”
- POLITICO’s Illinois Playbook reports that “EY is out with a new report on private equity’s impactnationwide and in Illinois, and the research is drawing praise from the American Investment Council. ‘The report shines an important and timely light on the positive and growing impact private equity has on the strength and success of the economy,’ AIC President and CEO Drew Maloney said in a release. The report shows U.S. private equity supports 5 percent of the nation’s gross domestic product, with a total economic impact of $43 billion in Illinois and $1.1 trillion nationally. In conjunction with the report’s release, AIC also launched a new website and a 30-second ad promoting private equity.”
- New York’s Spectrum News also highlighted the study, noting that the, “report paints a picture of private equity that has more direct involvement in the state’s economy, including how the state pension fund has an in-state private equity investment program, which has led to a $863 million return on $583 million invested.”
- Inside Indiana Business reports on EY’s findings that “the private equity industry supports employment of 179,000 workers in Indiana, who earn $73,000 per year in wages and benefits on average and a total economic impact of nearly $14 billion in Indiana and $1.1 trillion nationally from the industry.”
