New EY Report Shows Private Equity’s Positive Impact on U.S. Economy

Growing Industry Now Supports 5% of America’s GDP & Millions of U.S. Jobs

WASHINGTON, D.C. — The private equity industry supports more than 26 million US jobs and approximately 5% of U.S. GDP, according to a new report by EY and the American Investment Council (AIC), which outlines the positive impact the industry has on the US economy. The report looks at the industry’s growing role in supporting US jobs including:

  • Direct employment of 8.8 million workers across all 50 states, who earn $71,000 per year in wages and benefits on average;
  • Supply chain employment of 7.2 million workers;
  • And related consumer spending supporting 10.4 million workers.

Click Here to Read the Full Report

In conjunction with the report’s release, AIC is also launching a new website – and a substantial national digital advertising campaign to educate Americans about the positive role private equity plays in creating jobs, driving economic growth and supporting local communities.  Click below to see one of the new ads

This new report shines an important and timely light on the positive and growing impact private equity has on the strength and success of our nation’s economy,” said Drew Maloney, AIC President and CEO. “From helping rebuild America’s manufacturing base to supporting millions of good-paying jobs in industries from tech to hotels to transportation and trade, private equity is a driving force for economic growth and opportunity for our country’s economy and workers” 

The EY report reveals that U.S. private equity now supports 5% of America’s gross domestic product (GDP), with a total economic impact of nearly $1.1 trillion.  The study also shows that private equity plays a vital role in the tax base of our states and local communities, supporting critical investments in schools, transportation, infrastructure and other key priorities. In 2018, alone, the U.S. private equity sector paid $174 billion in federal, state, and local taxes. Approximately two-thirds of these were federal taxes ($113 billion) with the remaining taxes paid to state and local governments ($61 billion).

  “Every single member of Congress has private equity-backed jobs and investment in their local communities. Whether it’s picking up coffee from Dunkin Donuts, buying milk from Dollar General, staying in a hotel like a Hilton or taking a Lyft across their town, the positive force of private equity is being felt in communities and jobs throughout the country every day,” Maloney said. 

Today’s report comes on the heels of a separate report from the American Investment Council detailing the positive role private equity now plays in providing a stronger and more secure retirement for millions of Americans, including teachers and first responders.  The report analyzed investment returns by 165 US public pension funds and highlighted how private equity continues to deliver the highest returns of any asset class. The study showed private equity continues to lead all asset classes in long-term investment performance, with private equity’s median 10-year annualized return of 10.2% surpassing public equity’s 8.5% and real estate’s 4.8%.

  “Teachers, firefighters, police officers and other dedicated public servants in all 50 states will be able to have peace of mind in retirements due to the returns of private equity. Public pension funds across the nation partner with private equity because our industry has a proven track record of maximizing returns and providing stability for hardworking Americans,” Maloney concluded.

About the private equity industry and the American Investment Council

The American Investment Council (AIC) is the leading advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at