Private Equity: Fueling Growth and Job Creation for Inc. 5000 Awardees

Private equity has played a significant role in the growth and success of the Inc. 5000 Fastest Growing Companies. A recent report by BluWave, the Business Builders’ Network, highlights the influence of private equity in America's fastest-growing companies. These private equity-backed companies have not only created jobs but also experienced remarkable revenue growth.

According to BluWave's analysis, private equity-backed Inc. 5000 companies have added over 800,000 jobs in the past three years. While they represent only 11 percent of the Inc. 5000, they account for 64 percent of the 1.2 million jobs added by the awardees during the same period. This highlights the significant impact of private equity in job creation.

The analysis also reveals that private equity-backed companies have achieved impressive revenue growth. On average, these companies experienced a growth rate of 480 percent in total revenue over the past three years. This demonstrates the strategic resources and support provided by private equity firms to help their portfolio companies expand and thrive.

Sean Mooney, founder and CEO of BluWave, emphasizes the role of private equity in driving growth. He states, "BluWave’s ongoing series of Private Equity Insights Reports have revealed that the PE industry fuels significant growth in large part due to the industry’s meaningful provisioning of strategic resources." This support enables portfolio companies to expand in accelerated, predictable, and confident ways.

HCI Equity Partners, a leading lower-middle market private equity firm based in Washington, D.C., exemplifies the positive impact of private equity. Four of their portfolio companies have been recognized on the Inc. 5000 list. These companies operate in diverse industries, including food, preventative maintenance, protective gear, and hospitality. The wide range of end markets benefiting from private equity investments illustrates the breadth of impact across various sectors.

Doug McCormick, Managing Partner and Chief Investment Officer at HCI Equity Partners, expresses pride in the recognition of their portfolio companies. He states, "It’s a privilege to support the growth and development of such amazing businesses, while providing value to our stakeholders and creating jobs that are built to last." HCI Equity Partners adds value to their portfolio companies through strategic support and operational engagement, which accelerates growth and delivers transformational initiatives.

BluWave's analysis also indicates that approximately 11 percent of Inc. 5000 companies are backed by private equity firms. This further demonstrates the significant role private equity plays in driving the success of the fastest-growing companies in America.

BluWave's position as a Business Builders' Network allows them to identify trends in the market ahead of others. Their proprietary data, powered by thousands of project requests from dealmakers, enables them to support critical due diligence and value creation resource needs. More than 500 private equity firms and thousands of portfolio companies trust BluWave to connect them with proven providers across various aspects of their business.

BluWave consistently releases industry insights reports, providing valuable data and predictions about the private equity market and the broader economy. This ongoing series of reports enables businesses to stay informed and make informed decisions.

In conclusion, private equity has played an instrumental role in the growth and success of the Inc. 5000 Fastest Growing Companies. These private equity-backed companies have not only created jobs but also experienced impressive revenue growth. The support and resources provided by private equity firms have allowed these companies to expand and thrive in their respective industries. As private equity continues to fuel growth, the business landscape is likely to witness more success stories from the Inc. 5000 awardees.