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New report shows private equity creating jobs and driving economic growth across Kentucky

New research from EY and the American Investment Council reveals that across Kentucky, the private equity industry employs more than 102,000 workers—who, on average, earn $69,000 a year in wages and benefits. Beyond these direct jobs, the industry supports more than 327,000 jobs and generates $700 million in state and local taxes, a tremendous benefit to communities in every corner of the Commonwealth.

“This new report shines an important and timely light on the positive and growing impact private equity has on the strength and success of economy, in Kentucky and nationwide,” 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 workers and families in Kentucky and throughout the country.”

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Locally, private equity plays a tremendous role in helping Kentucky businesses grow and expand. In 2018 alone, Louisville-area businesses received more than $4.2 billion in private equity funding—including well-known businesses in healthcare, logistics, and manufacturing. In what was a banner year for private equity growth in Louisville, the city saw six times more investment than perennial regional competitor Indianapolis, according to investment tracking site PitchBook.

The economic impact research comes from a broader report on the state of the industry in the United States, finding that as a whole, private equity supports more than 26 million US jobs and approximately 5% of US GDP. As an industry, U.S. private equity now supports a total economic impact of nearly $14 billion in Kentucky and $1.1 trillion nationally–playing a vital role in the tax base of our states and local communities, supporting positive investments in schools, transportation, infrastructure and other key priorities to the tune of $700 million annually.

“Every single member of Kentucky’s Congressional delegation 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 U.S. 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 percent surpassing public equity’s 8.5 percent and real estate’s 4.8 percent.

“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.

In conjunction with the report’s release, AIC is also launching a new website — www.ThisIsPrivateEquity.com — and a substantial national digital advertising campaign, including in Kentucky, to educate Americans about the positive role private equity plays in creating jobs, driving economic growth and supporting local communities.

Visit thisisprivateequity.com to read the full report. Kentucky-specific findings can be found at www.investmentcouncil.org. The new campaign can be view below:

From American Investment Council

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