DETROIT – A
new study released Thursday says from 1995 to 2013, private capital-backed
middle-market companies in Detroit outperformed other companies on sales,
driving employment growth.
The report
came from the Detroit chapter of the Association for Corporate Growth. The
source of the data, GrowthEconomy.org, details the results of private equity
investment throughout the United States. Importantly, and for the first time
ever, the updated GrowthEconomy.org reveals how private equity investment is
the leading driver of jobs and sales growth in the middle market.
“Private
equity investment has a positive, powerful and profound impact on the local
MetroDetroit economy and, specifically, on the middle market,” Rob
Dutkiewicz, president of ACG Detroit and shareholder with Clayton &
McKervey, P.C.
The middle
market plays a crucial role in the U.S. economy. According to the National
Center for the Middle Market at The Ohio State University, the sector
represents 47.9 million employees and one-third of American GDP. The middle
market is defined as companies with revenues between $10 million and $1 billion.
Based on employee population, Metro Detroit is the 12th largest middle-market
metropolitan statistical area (MSA) in the country.
The newly
released GrowthEconomy.org data shows that:
Private
equity investments created more than 21,000 new jobs in MetroDetroit from
1995-2013.
From 1995
through 2013, Detroit private equity-backed companies grew jobs by 194.7
percent, while all other companies grew jobs by 5.4 percent. Virtually all of
this growth comes from the middle market.
From 1995
through 2013, private equity-backed companies grew sales by 182.1 percent,
while all other businesses grew sales by 10.3 percent. This growth provided
$2.5 billion of sales in the local MetroDetroit middle-market economy.
“ACG’s
mission is driving middle-market growth,� said Jay Hansen, ACG Detroit board
member and managing partner of O2 Investment Partners. “ACG members are the
innovators and capital providers to middle-market companies and the Growth
Economy analysis makes it clear that private equity�particularly middle-market
private equity – helps local Detroit companies as we come back from a deep
recession. This is the story our chapter wants to share with local business
leaders and elected officials through a fresh grassroots initiative.”
ACG Detroit
President Rob Dutkiewicz will be joined by ACG Detroit board members Jay Hansen
of Bloomfield Hills; Steve Ellis, managing director of Stratford-Cambridge
Group in Farmington Hills; Gretchen Perkins, partner with Huron Capital
Partners, LLC in Detroit; and members of the ACG Western Michigan chapter in
executing a grassroots campaign in Michigan through the remainder of 2015.
