Study: Texas tops state rankings for private equity investment

Texas saw the most private equity investment in 2013 by both investment value and number of investments.   

Private equity firms invested more than $443 billion in U.S.-based companies last year, a 27 percent increase over the previous year, according to the Private Equity Growth Capital Council's fourth annual investment report, “Private Equity: Top States and Districts.” The report ranks states by investment value and number of investments.

Texas topped the list, beating out California, Pennsylvania, New York and Florida. This is the third consecutive year that Texas has accounted for the highest rate of private equity investment. Measured in dollars invested, $87.4 billion flowed into the state across 282 companies.

California came in second at $54 billion, followed by Pennsylvania at $44 billion, which moved up in the rankings from sixth place last year.  Other states that moved up in the rankings are Virginia ($14.7 billion), which jumped from sixteenth to seventh, and Maryland, Delaware and Minnesota, which all moved into the top 20 in 2013.

States with the top Congressional districts for private equity investment included Texas, Pennsylvania and New York.  In all, private equity investment across the top 20 congressional districts totaled $168 billion.

On a sector basis, IT, consumer and business services account for the areas with the highest investment.

“The companies in states across the country that receive private equity investment are able to expand their businesses, develop new innovations and hire workers and this report highlights the important contributions of private equity in the U.S. economy,” said Steve Judge, president and CEO of the Private Equity Growth Capital Council in a statement.