Private equity firms concentrate investments in high-growth states, aligning with local economic strengths and specialized industries, according to data from Private Equity Info's M&A research database. Economic growth rates vary, but states with dynamic and expanding industries generally see stronger private equity investment activity.
Investments tend to flow into sectors where states have a competitive advantage, such as technology in innovation hubs, financial services in established markets, and healthcare in regions with strong demographic demand. Additionally, states with pro-business environments, advanced research institutions, or key infrastructure hubs attract more private equity activity.
This study examined the key industries represented by private equity platform investments in the six states with the highest number of active private equity holdings.
|
State |
Portfolio Count* |
Top 5-Digit NAICS Industry |
Economic Growth (%)** |
Key Economic Drivers |
|
California |
3,209 |
Tech & Life Sciences |
3.5% |
Innovation, Venture Capital |
|
Texas |
2,457 |
Energy & Tech |
4.0% |
Pro-Business Climate, Energy Hub |
|
New York |
2,017 |
Financial Services |
2.8% |
Established Financial Ecosystem |
|
Florida |
1,425 |
Healthcare |
3.2% |
Aging Population, Medical Innovation |
|
Massachusetts |
1,109 |
Biotechnology & Research |
3.0% |
Advanced Research Institutions, Skilled Talent |
|
Georgia |
761 |
Logistics & Technology |
3.1% |
Transportation Hub, Digital Innovation |
* Current platform investments only.
** Growth based on year-over-year change economic activity.