Private equity firms clearly have a big stick in terms of their importance to and influence over the U.S. economy, but historically the vast majority of them have spoken softly. In today’s environment, this needs to change.
Private equity firms are incredibly important to the U.S. economy and the financial security of Americans. They help manage the retirement and life savings of tens of millions of people in the United States. Their portfolio companies account for approximately 5% of total U.S. GDP, provide approximately 8.8 million of the nation’s jobs and are active in such vital industries as healthcare, defense, technology and education. The asset class also is a highly effective mobilizer of capital to empower important initiatives that drive our nation forward and provide jobs and other opportunities to Americans.
But doing is only half the equation for private equity, as the industry’s public profile continues to grow. It’s also important that private equity firms communicate to stakeholders about what they’re doing to help our economy and country continue to advance amidst ongoing pandemic-related challenges. Private equity firms themselves expect this level of communication from the companies in which they have invested. They should be held to the same standard when it comes to their own communications.
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