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Private equity-backed middle-market companies continue to see sales and job growth outpace other U.S. companies, according to new data on GrowthEconomy.org
CHICAGO, Sept. 12, 2018 – The Association for Corporate Growth reported Tuesday that post-recession sales growth in private equity-backed companies grew by 103 percent, with 80 percent of that growth borne from the middle market.
The recent addition of 2015-17 sales and jobs data to GrowthEconomy.org confirmed the trend that private equity-backed companies outpace the growth of other U.S. companies. During that time frame, private equity-backed companies grew jobs by 60 percent, compared with all other U.S. companies, which experienced 24 percent job growth.
Throughout the period of 1998-2017:
- More than 3,700 new companies received private equity financing
- Nearly 100,000 additional jobs were created through private equity investment in the middle market
- Sales by private equity-backed companies grew by 103 percent; 80 percent of the growth derived from middle-market companies
“This is powerful information that tells the story of who and what buoyed job growth in the past two decades, especially since the recession,” said Pat Morris, Association for Corporate Growth (ACG) president and CEO. “The investment of private capital into middle-market companies clearly benefits the public good.”
GrowthEconomy.org is a robust database, created in partnership with the Association for Corporate Growth and the Business Dynamics Research Consortium (BDRC), operated by the University of Wisconsin System Institute for Business & Entrepreneurship.
GrowthEconomy.org data is regularly used by journalists, lawmakers and policymakers. Users can search geographically by state, region or congressional district. The areas with the greatest sustained job growth in the middle market from 1998-2017 are:
- State: Florida, 80 percent
- Metropolitan Region: Houston-The Woodlands-Sugar, 141 percent
- Congressional District: Nevada District 1, 828 percent
“More than any other factor in the data, private equity-backed companies grew jobs and sales substantially faster and more consistently relative to all other companies,” said Gregg Cole, BDRC director of research and data innovation.
Two independent data sets are used in GrowthEconomy.org: the YourEconomy Time Series (YTS) database, assembled and verified from Infogroup Historical Business data, and PitchBook, the leading provider of independent private equity research and data.
“As the PE industry continues to grow and attract more capital, the number of PE-backed middle-market companies has continued to swell,” said Wylie Fernyhough, an analyst at PitchBook. “Our most recent analysis shows middle-market activity made up 68 percent of total PE deal flow, the highest proportion in more than a decade. We expect that the middle market will represent a larger portion of total PE deal flow in the years to come.”
Morris said ACG invested in GrowthEconomy.org in 2013 because the data helps tell the story of the human and economic impact of private equity investment.
“ACG’s members diligently work in and invest in middle-market companies throughout this country, where they retain talent, preserve family legacies, create new jobs and sustain the quality of life,” Morris said. “GrowthEconomy.org helps illustrate how private capital is the leading driver of sales and job growth in the middle market.”
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Media Contacts:
Karen Craven
Association for Corporate Growth
(773) 230-8785
kcraven@acg.org
Jennie Broecker
Institute for Business & Entrepreneurship
(608) 262-6126
jennie.broecker@uwex.edu
About the Association for Corporate Growth
Founded in 1954, ACG has 59 chapters across the globe. ACG’s worldwide network comprises 90,000 professionals within the middle market, including 14,500 members who serve as the investors, lenders, owners, executives and advisers to growing middle-market companies. ACG’s mission is to drive middle-market growth. For more information about ACG, please visit www.acg.org.
About the Business Dynamics Research Consortium
The Business Dynamics Research Consortium (BDRC), housed at the University of Wisconsin System’s Institute for Business & Entrepreneurship, is committed to creating data resources and insights that stimulate research on individual business performance and its impact on overall economic growth.
About GrowthEconomy.org
Growth Economy is an award-winning dynamic research database that matches data from two independent sources to track a key driver of the U.S. economy: how private equity-backed companies compare to other U.S. businesses on sales and job growth. This powerful research tool is made possible through a partnership among the Association for Corporate Growth (ACG), PitchBook Data, Inc. and the University of Wisconsin System Institute for Business & Entrepreneurship's Business Dynamics Research Consortium (BDRC).
Sep 11 2018