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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_2007

    • Equity investments by PE firms in 2007: $234 billion
      (Source: Preqin)
    • PE funds raised in 2007: $518 billion
      (Source: Preqin)

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    • PE transactions in 2007: 2,238
      (Source: Preqin)

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    • Average PE equity contribution in 2007: 32 percent
      (Source: Preqin)
    • Five largest industries by PE investment in 2007: Telecom; Finance; Energy; Retail; Healthcare
      (Source: Preqin)

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    • Cumulative net profits returned to investors through 2007: $1.12 trillion
      (Source: Preqin)
    • Average annual returns to investors from top-quartile PE firms 1980-2005: 39 percent
      (Source: PEC analysis of data from Bloomberg and Venture Economics)
    • Share of investments in top 100 PE firms from pension funds, endowments, foundations since 2005: 70 percent
      (Source: Preqin)
    • Number of PE firms in U.S.: 1,100
      (Source: Thomson Reuters)
    • Number of PE firms worldwide: 2,140
      (Source: Thomson Reuters)
    • Total value of private equity transactions in 2007: $721 billion
      (Source: Preqin)

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    • Number of years PE firms hold onto portfolio companies on average: 5
      (Source: World Economic Forum)
    • 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: 49 percent
      (Source: Ernst & Young)

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