In 2020, private equity continued to provide a strong return on investment, with a median annualized return of 12.3% over a 10-year period.

The private equity industry and private equity-backed companies directly employed more than 11.7 million workers in the United States in 2020 and generated $1.4 trillion of gross domestic product (GDP), or approximately 6.5% of total GDP, according to a report by EY and the American Investment Council.

Private equity firms are investing billions in capital into fast-growing clean energy sectors such as solar, carbon capture, and battery storage. Last year alone, private equity invested nearly $24 billion in renewable energy companies – a four-fold increase over 2019.