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What's Wrong With Trumka's Op-Ed

In a recent op-ed in The Wall Street Journal, AFL-CIO President Richard L. Trumka mischaracterizes private equity’s record in creating jobs, strengthening companies and benefiting workers.

Read the truth about private equity investment

PE by the Numbers

• Equity investments by PE firms from 2001 through Q1 2010: $296 billion
  ^{(Source: Thomson Reuters)}

• Average PE equity contribution to U.S. deals: in 2009 – 46 percent; in 2008 – 39 percent; in 2007 – 33 percent
  ^{(Source: Standard & Poor’s via Ernst & Young)}

• Cumulative net profits returned to investors through 2009: $382.6 billion
  ^{(Source: Preqin)}

• Employment at U.S.-based PE-backed portfolio companies: 6 million
  ^{(Source: PitchBook and PEC calculations)}

• PE funds raised in 2009: $245.6 billion
  ^{(Source: Preqin)}

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• Buyout Funds raised in 2009: $102.2 billion
  ^{(Source: Preqin)}

• Share of current investments in PE funds from pension funds, endowments, foundations: 66 percent
  ^{(Source: Preqin)}

• Number of PE firms in U.S.: 1,824
  ^{(Source: PitchBook)}

• Number of PE firms worldwide: 2,560
  ^{(Source: PitchBook)}

• PE transactions in 2009: 925
  ^{(Source: Preqin)}

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• Five largest industries by PE investment in 2009: Business Services; Consumer Products; Healthcare; Industrial; Information Technology
  ^{(Source: xxx)}

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• Average leverage multiples (ratio of total debt to EBITDA) for U.S. PE-backed portfolio companies: in 2009 – 4.0; in 2008 – 4.9; in 2007 – 6.2 percent
  ^{(Source: Standard & Poor’s via Ernst & Young)}

• Total value of private equity transactions in 2009: $76.4 billion
  ^{(Source: Preqin)}

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• Number of years PE firms hold onto portfolio companies on average: 5
  ^{(Source: World Economic Forum)}

• Offer Value of U.S. PE-backed IPOs from 2001 through to Q1 2010: $70.45 billion
  ^{(Source: Thomson Reuters)}

• Value of U.S. PE-backed M&A from 2001 through to Q1 2010: $1.38 trillion
  ^{(Source: Thomson Reuters)}

• Rate of job growth above industry average at new U.S. facilities built by portfolio companies: 6 percent
  ^{(Source: World Economic Forum)}

• Organic revenue growth contribution to overall increase in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of PE portfolio companies: 52 percent
  ^{(Source: Ernst & Young)}

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