BluWave’s Influence of Private Equity Report reveals that PE-backed companies on the 2023 Inc. 5000 Fastest Growing Companies list grew revenue by 480% and drove 64% of job creation.

NASHVILLE, Tenn. – December 5, 2023 – BluWave, the Business Builders’ Network that connects the private equity industry with best-in-class talent, industry consultants and service providers, today released its Influence of Private Equity Report that captures the impact PE has on America’s fastest-growing companies.

BluWave’s analysis reveals that the private equity industry has played an outsized role in the growth and development of the 2023 Inc. 5000 Fastest Growing Companies awardees. Private equity-backed Inc. 5000 companies have added more than 800,000 jobs over the past three years. While these companies represent approximately 11 percent of the Inc. 5000, they account for 64 percent of the 1.2 million jobs added by Inc. 5000 awardees over the past three years.

The influence of PE-backed companies extends beyond job creation. The analysis found that private equity-backed companies grew remarkably fast, with an average growth rate of 480 percent in total revenue over the three-year review period.

“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,” said Sean Mooney, founder and CEO of BluWave. “This helps their portfolio companies expand in more accelerated, predictable and confident ways. BluWave’s Q3 2023 Insights Report highlighted that more than 75 percent of all projects conducted by the private equity industry in 2023 were related to creating value in their portfolio companies.”

HCI Equity Partners, a leading lower-middle market private equity firm headquartered in Washington, D.C., serves as an example of one such PE firm. HCI has four of its portfolio companies recognized on the Inc. 5000 list. These companies provide valued products and services to the food, preventative maintenance, protective gear and hospitality markets. The diversity of industries represented also illustrates the wide range of end markets benefiting from private equity investments.

“We are immensely proud to have four of our portfolio companies recognized in the Inc. 5000 list,” said Doug McCormick, Managing Partner and Chief Investment Officer at HCI Equity Partners. “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.”

“Through thoughtful partnership, HCI has added value across multiple areas of our organization,” said Scott Milberg, CEO of AmerCareRoyal, a single-stream resource for disposable products. “In addition to providing access to capital and strategic support, the operational engagement they provide helps us successfully deliver transformational initiatives and accelerate our growth.”

Further indicating private equity’s outsized role in the fastest-growing companies, BluWave’s analysis also reveals that approximately 11 percent – or more than 550 of the Inc. 5000 companies on the list, are backed by private equity firms.

To learn more, download a copy of the full report – https://bit.ly/3TkpZ7P