Texas tops US states for 2016 PE investment, California and Massachusetts close behind

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Texas and California were the standout US states for private equity investment last year, new research shows.

The latest Top States and Districts study from the American Investment Council revealed Texas picked up almost $80bn of private equity investment over the year, with California just behind on $77bn.

Massachusetts was only just behind on $76bn – well ahead of fourth-placed Florida on $41.8bn – despite recording just 152 deals across the year.

In contrast, Texas saw 413 deals, California 522 and Florida 219, the research backed by Pitchbook data said.

Overall private equity funds invested more than $644bn in over 3,700 US-based businesses during the year, the report showed.

Massachusetts’ 4th congressional district received an enormous $61.15bn alone, easily ranking as the top US district for private equity investment.

The rise of that district to the top of the list was driven in large part by Silver Lake-backed Dell Technologies’ acquisition of EMC, which created the world’s largest privately-controlled tech company.

AIC vice president of research and investor relations Bronwyn Bailey said, “The healthy competition among PE firms to deploy capital translates into innovative solutions for portfolio company growth strategies and improved efforts to repair distressed companies, regardless of their geography.

“Our report also demonstrates the industry’s ability to successfully invest in diverse sectors such as information technology, business services, energy, and healthcare.

“Private equity is extending its reach and investing for the long-term throughout state economies.”

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