Top States & Districts 2020 - American Investment Council (2024)

TheAmerican Investment Council released its annualTop States and Districts report, which ranks the country’s top twenty states and Congressional districts both in terms of total private equity capital and the number of companies receiving investment in 2020.

Key findings from the report include:

  • California topped the list of states receiving the most private equity investment, with $87 billion in capital invested. The top 5 states included California ($87 billion), Texas ($60 billion), Florida ($59 billion), New York ($42 billion), and Massachusetts ($37 billion).
  • Private equity is supporting businesses in every state in the U.S. The states with the most PE-backed companies are in all corners of the country, including investments in companies like Safe Harbor Water Power in Pennsylvania, Sierra Machinery in Nevada, Five Rivers Cattle Feeding in Colorado, and Huddle House in Georgia, to name a few.
  • Colorado District 2, represented by Rep. Joe Neguse, received the most private equity investment of any congressional district. The ranking of the top 20 districts spanned across 12 states, in every region of the country. The top five districts include:
    • Joe Neguse’s CO-2:$16.87 billion
    • Stephen Lynch’s MA-8:$16.83 billion
    • Carolyn Maloney’s NY-12:$15.19 billion
    • Speaker Nancy Pelosi’s CA-12’s:$15.03 billion
    • Debbie Wasserman Schultz’s FL-23:$12.15 billion
  • Chip Roy’s TX-21 ($8.72 billion), Rep. John Curtis’s UT-3 ($8.56 billion), and Rep. Diana DeGette’s CO-1 ($7.38 billion) rounded out the top ten districts receiving the most private equity investment.
Top States & Districts 2020 - American Investment Council (1)

“Our annual Top States and Districts Report underscores how private equity is supporting businesses and jobs in every state across the country,”.“Last year, private equity provided hundreds of billions of dollars to struggling companies to save jobs and help businesses make it through the pandemic. The figures in this report are more than just data points – these are business owners and American workers who found a steady partner in private equity during uncertain times.”

Drew Maloney, American Investment Council President and CEO

Private equity firms provided hundreds of billions of dollars of equity to struggling companies in 2020. Despite the turmoil, private equity had its most active year ever and eclipsed 5,000 deals last year, totaling more than $650 billion in capital invested. Many of those investments were rescue capital — restaurant chains and hair salons bought out of bankruptcy, or public companies such as Airbnb and Expedia receiving much-needed capital to ride out the storm.

As of 2020, the vast majority — 86% — of private equity investment went to small businesses employing 500 workers or less. PE supported nearly 14,000 small businesses, and roughly a third of businesses receiving private equity backing employed just 10 workers or less.

The report also includes a breakdown of the top states for PE investment in healthcare, energy and renewable energy, manufacturing, technology, agriculture, education and more.

Read the full report:

Top States & Districts 2020 - American Investment Council (2024)

FAQs

What are the top states for private equity? ›

The top 5 states include: California – $172 billion invested in 1,006 PE-backed companies. Texas – $82 billion invested in 624 PE-backed companies. Florida – $74.4 billion invested in 570 PE-backed companies.

What state has the most investors? ›

Key findings from the report include: California topped the list of states receiving the most private equity investment, with $87 billion in capital invested. The top 5 states included California ($87 billion), Texas ($60 billion), Florida ($59 billion), New York ($42 billion), and Massachusetts ($37 billion).

How much money do you need to invest in private equity? ›

What is the minimum investment required? The required minimum investment is often $25 million, but can be higher or lower. Some private equity firms have lower minimums of several hundred thousand dollars.

Where is the headquarters of the American investment Council? ›

Washington, D.C., U.S.

Which state has the best public services? ›

Detailed Breakdown by State
Overall Gov't. Services RankStateTotal Score
1Virginia71.12
Mar 21, 2023

Who makes the most money in private equity? ›

Private Equity Paydays
NameFirm2021 Compensation and Dividend Earnings
Jonathan GrayBlackstone$321,370,488
Hamilton JamesBlackstone$161,698,945
George RobertsKKR$112,736,561
Henry KravisKKR$108,518,677
3 more rows
Feb 28, 2022

Who is the richest investor in USA? ›

Warren Edward Buffett (/ˈbʌfɪt/ BUF-it; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway.

Who is the biggest investor in US? ›

1. Warren Buffett. As one of the world's wealthiest investors, Warren Buffett almost needs no introduction. He's CEO and chairman of Berkshire Hathaway, a $665 billion conglomerate that acts as the holding company for Buffett's investments, both its wholly-owned companies and its stocks.

Which state in US has most wealth management firms? ›

Not surprisingly, New York and California house the largest populations of registered investment advisors, according to the 2014 Evolution Revolution report released by NRS and the Investment Adviser Association.

What is the 8 20 rule private equity? ›

The 20% performance fee is the biggest source of income for hedge funds. The performance fee is only charged when the fund's profits exceed a prior agreed-upon level. A common threshold level used is 8%. That means that the hedge fund only charges the 20% performance fee if profits for the year surpass the 8% level.

What is the 2 20 rule private equity? ›

At its most basic, the two and twenty is basically the standard fee structure for venture capital firms to charge their investors. The 2% is the annual fee that the fund charges investors to manage the fund. And the 20% is the percentage of the upside that the fund managers take.

How much does the average person make in private equity? ›

Private Equity Salary
Annual SalaryMonthly Pay
Top Earners$160,000$13,333
75th Percentile$111,500$9,291
Average$99,280$8,273
25th Percentile$65,500$5,458

Who are accredited investors in USA? ›

In the U.S., an accredited investor is anyone who meets one of the below criteria: Individuals who have an income greater than $200,000 in each of the past two years or whose joint income with a spouse is greater than $300,000 for those years, and a reasonable expectation of the same income level in the current year.

Who regulates investment companies in USA? ›

The SEC is the federal agency responsible for overseeing the securities industry, including the registration and regulation of investment companies, investment advisers and broker-dealers. Securities offerings are registered with the SEC unless an exemption from registration is available.

Who runs American funds? ›

Capital Group is one of the world's largest investment management firms. It is the parent company of subsidiary American Funds, which offers investors with low-cost mutual funds.

What's the nicest state to live in? ›

Download Table Data
StateOverall RankCrime
Washington119
Minnesota215
Utah38
New Hampshire41
21 more rows

What's the best state to live in financially? ›

Take a look at the 10 cheapest states to live in for 2022.
  1. Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. ...
  2. Kansas. ...
  3. Alabama. ...
  4. Oklahoma. ...
  5. Georgia. ...
  6. Tennessee. ...
  7. Missouri. ...
  8. Iowa.
Mar 31, 2023

What is the best ROI state? ›

1. Wyoming: 203% 5-year ROI on College. Wyoming has some of the highest wages for high school graduates: $31,936 a year, on average. This results in a 43 percent increase in pay for earning a bachelor's degree.

Can you get rich in private equity? ›

Private equity is a very lucrative career. As an asset class, private equity has enjoyed tremendous success over the past decade. Investors around the globe continue to pile their money into private equity firms.

What is the average private equity CEO salary? ›

Private Equity Ceo Salary
Annual SalaryMonthly Pay
Top Earners$180,000$15,000
75th Percentile$165,500$13,791
Average$110,089$9,174
25th Percentile$55,000$4,583

Who are the big three private equity? ›

The four largest publicly traded private equity firms are Apollo Global Management (APO), The Blackstone Group (BX), The Carlyle Group (CG), and KKR & Co.

Who is the richest billionaire family in the United States? ›

The top 10 richest families in 2022 by estimated wealth are: The Walton family with $224.5 billion. The Mars family with $160 billion. The Koch family with $128.8 billion.

What is the most money made from a stock? ›

Berkshire Hathaway holds the title for having the highest stock price—$445,000.

Who owns the most stock in the world? ›

'Billionaire Stocks': Bill Gates, Berkshire Hathaway (BRK.B)

The natural stock pick held by the world's wealthiest person is Microsoft (NASDAQ:MSFT), the giant tech company Bill Gates co-founded with Paul Allen in 1975. Gates still owns almost 103 million shares of the company worth $15.4 billion.

Which country invests most in USA? ›

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

Who is the most successful investor alive? ›

The story of the top 5 richest investors in the world
  • Warren Buffett. Net worth: $103 Billion. Founder & CEO of Berkshire Hathaway. ...
  • Jim Simons. Net worth: $28.6 Billion. Founder of RenTech, a quantitative hedge fund. ...
  • Ken Griffin. Net worth: $27 Billion. ...
  • Ray Dalio. Net worth: $22 Billion. ...
  • Carl Icahn. Net worth: $17.5 Billion.
Apr 17, 2023

Who is the smartest investor in the world? ›

Warren Buffett is often considered the world's best investor of modern times. Buffett started investing at a young age, and was influenced by Benjamin Graham's value investing philosophy.

What state makes the most millionaires? ›

by state U.S. 2020. In 2020, California had the highest number of millionaire households in the U.S., with 1.14 million households having one million or more in investible assets. This is nearly double the 650,216 millionaire households in Texas, the state with the second-highest number.

What is the best state to be a millionaire? ›

Comparing all US states across a range of factors, we can reveal that the best place to live if you want to become a millionaire is New Hampshire. With an overall index score of 80.733, you're more likely to hit a seven-digit net worth here than in any other US region.

Where are the most millionaires by state? ›

California

What are the 4 P's of private equity? ›

Our roundtable discussion was framed by the 4 P's of investing: Product, People, Potential, and Predictability.

What is the Rule of 21 in investing? ›

The theory is that if the PE ratio plus inflation is less than 21, then the market still represents value, whereas if this value exceeds 21, the market is becoming expensive.

What is the Rule of 7 investment? ›

 At 10%, you could double your initial investment every seven years (72 divided by 10). In a less-risky investment such as bonds, which have averaged a return of about 5% to 6% over the same time period, you could expect to double your money in about 12 years (72 divided by 6).

What is the rule of 72 private equity? ›

The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself.

What is the best way to break into private equity? ›

Private equity firms usually look for entry-level associates with at least two years of experience within the banking industry. Investment bankers usually follow the PE firm career path as their next job and typically have a bachelor's degree in finance, accounting, economics, and other related fields.

Does private equity always buy 100%? ›

Private equity firms are not passive investors. They often buy 100% of a target company, or at least a controlling stake, and may do a lot of work to streamline its operations, cut costs or improve performance.

Why do people in private equity make so much money? ›

Private equity owners make money by buying companies they believe have value and can be improved. They make money by improving the company, which generates more profits, making them money. They also make money when they eventually sell the improved company for more than they bought it for.

What is the average age to get into private equity? ›

The Private Equity Career Path
Position TitleTypical Age RangeTime for Promotion to Next Level
Associate24-282-3 years
Senior Associate26-322-3 years
Vice President (VP)30-353-4 years
Director or Principal33-393-4 years
2 more rows

What degree is best for private equity? ›

Candidates should have an bachelor's degree in an analytical major like finance, accounting, statistics, mathematics, or economics.

Which state has the most venture capital firms? ›

  • California. #1 in Venture Capital. #33 in Best States Overall. ...
  • Massachusetts. #1 in Venture Capital. #11 in Best States Overall. ...
  • Delaware. #3 in Venture Capital. ...
  • Wyoming. #4 in Venture Capital. ...
  • Vermont. #5 in Venture Capital. ...
  • New York. #6 in Venture Capital. ...
  • Washington. #7 in Venture Capital. ...
  • Colorado. #8 in Venture Capital.

What are the top majors for private equity? ›

Private Equity Jobs

Investment bankers usually follow the PE firm career path as their next job and typically have a bachelor's degree in finance, accounting, economics, and other related fields.

What is most favored nation private equity? ›

What is the most favored nation clause in venture capital? The most-favored-nation clause — also referred to as the MFN clause — enables early investors to receive the same terms as later investors, if the later investor received “better” terms than the earlier investor did.

Who is the godfather of private equity? ›

However, the industry that is today described as private equity was conceived by a number of corporate financiers, most notably Jerome Kohlberg Jr. and later his protégé, Henry Kravis.

Are private equity guys rich? ›

Amid a booming year for the industry, the 22 private equity tycoons on The Forbes 400 are now worth more than $150 billion combined. I t is shaping up to be a stellar 2021 for private equity, with the industry on pace for a record-breaking year.

Which state has the most startups in USA? ›

California is the top region by number of new startups in the United States of America. As of 2018, number of new startups in California was 139,395 that accounts for 19.00% of the United States of America's number of new startups.

What is the best city for venture capital? ›

VC investment

Major metropolitan areas such as the Bay Area, Greater Boston, and New York City continue to make up much of the venture capital investment activity, driving roughly half of total investment in 2022.

Which state has most startups? ›

Over 50% Of Govt-Recognised Startups Centred In Five States, Maharashtra Tops List.

Is private equity a stressful job? ›

While the travel will be less, the work in private equity is very stressful and demanding, so the hours you actually spend working may be more stressful or mentally demanding.

Do you need an MBA in private equity? ›

Although most large private equity firms look exclusively for job candidates with an MBA, you can still get into a smaller firm without one. Smaller firms prefer candidates with an MBA, but it's not always a requirement.

What is most favorable nation status? ›

Most favored nation (MFN) status is an economic position in which a country enjoys the best trade terms given by its trading partner(s). That means it receives the lowest tariffs, the fewest trade barriers, and the highest import quotas (or none at all).

What is most favorable nation? ›

The most favoured nation (MFN) principle is based on the idea that countries should treat all their trade partners equally—that no one country should be “more favoured.” It means no country should give special treatment to goods or services coming from one particular trading partner.

What is a most-favoured-nation state? ›

“Most-Favoured-Nation” (“MFN”) treatment — requires Members to accord the most favourable tariff and regulatory treatment given to the pro- duct of any one Member at the time of import or export of “like products” to all other Members. This is a bedrock principle of the WTO.

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