Arizona listed as a top state for private equity investment
The study was done with data from PitchBook, which collects information on private equity investment from public sources, surveys, and primary research.
“It’s absolutely a positive. The main takeaway from this report is that it highlights that private equity has a presence throughout the entire country,” said James Maloney, vice president of public affairs at the American Investment Council.
In regard to Arizona’s ranking as nineteenth in the United States for private equity investment, Maloney said, “Private equity may not be known to people in the district but to be ranked in the top twenty means that there’s a strong investment climate in the Phoenix area.”
The largest private equity deal in 2016 was with JDA Software Group (NASDAQ: JDAS), which received $575 million in equity investment from private equity firms Blackstone and New Mountain Capital.
Small businesses in Phoenix benefit from private equity because it is “focused on long term growth strategies,” said Maloney. “There’s a significant focus on long term growth and strength of operations for companies in the Phoenix area.”
“From my perspective as an investor I couldn’t care less about the ranking. I’m more interested in the opportunities,” said James Goulka, managing director of AZ Tech Investors, a group of accredited investors that invest in high-potential early stage tech companies in Arizona and surrounding areas.
“People like to hang out with winners,” said Goulka. “The more winners we have the more it will attract the people who want to work with those companies.”
One particular industry that is growing is information technology.
According to the AIC study, 36 percent of private equity investment went into the information technology industry, which doesn’t come as a surprise to Goulka