Thanks to its dynamic economy and spirit of innovation, the United States is the cradle of private equity and is currently the
. Since its inception in the second half of the 20th century, private equity has emerged as a form of corporate financing alternative to the public markets: By
, private equity firms seek opportunities to earn higher returns than those that can be achieved in public equity markets. In recent years in particular, the private equity industry has become a crucial driver for growth and innovation,
Private equity's economic contribution
Private equity plays a significant role in the U.S. financial landscape, contributing to economic growth, job creation, and innovation. It is estimated that the
private equity sector in the U.S. directly generated 1.7 trillion U.S. dollars of GDP in 2022, or approximately 6.5 percent of the country’s total. Also considering the economic activity of PE-backed businesses and the related consumer spending, the total contribution reached four trillion U.S. dollars. Thanks to their dynamic economies and high level of innovation,
the states of California, Texas, Florida, and New York are the leaders in terms of private equity activity. In 2022, the number of individuals employed in the PE sector, or in businesses related to it, amounted to nearly 11 million in these four states alone.
U.S. private equity outlook
Recent geopolitical tensions brought a lot of instability in the global equity market in recent years, and the U.S. is not immune, despite the size of its private equity market. Investors globally felt particularly
concerned about the impact of inflation, anti-globalist policies, and global supply chain disruption on private equity markets. Recent surveys also showed that U.S. investors expect
challenging times ahead for private equity fundraising. Despite the challenges and risk, some sector appear to be less vulnerable to market shocks than others:
private equity activity in the technology, energy, and construction sectors is expected to increase, unlike the transportation, and business services sector, where investors anticipate a decrease in activity.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
