Private Equity Played an Outsize Role in the Growth of Inc. 5000 Awardees
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 ercent 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.
BluWave is uniquely positioned to identify trends ahead of the rest of the market based on its proprietary data powered by thousands of project requests from dealmakers contacting BluWave to support their critical due diligence and value creation resource needs. More than 500 PE firms and thousands of portfolio companies trust BluWave as their matchmaker to advance due diligence and value creation projects.
In its ongoing series of Industry Insights Reports, BluWave releases quarterly data and predictions about the private equity market and broader economy.
BluWave is the Business Builders' Network for private equity grade service provider needs. The company's platform combines technology, data and AI with concierge-like consultative support to expertly connect businesses with proven providers across due diligence, value creation and prep for sale. The BluWave Vetted™ network is an invite-only ecosystem of top-tier service-providing groups and individuals. Based in Nashville, Tennessee, BluWave ranks as one of America's fastest-growing companies and today serves more than 500 leading private equity firms and thousands of proactive businesses.
Visit BluWave.net to learn more.
About HCI Equity Partners
HCI Equity Partners is a leading lower middle-market private equity firm focused on partnering with family and founder-owned distribution, manufacturing, and service companies. HCI is headquartered in Washington, DC.
For more information, please visit www.hciequity.com.
AmerCareRoyal is a single stream resource for over 6,000 disposable products used in the foodservice, janitorial, sanitation, industrial, hospitality and medical industries. With multiple shipping points across North America our family of companies service national level customers with outstanding customer service and an ever-growing product line.
For more information, please visit www.amercareroyal.com.