Private markets: a growing force for economic growth and opportunity

Over the past several months, the American Investment Council (AIC), the leading advocacy and education organization for the private equity and private credit industries in the United States, has remained focused on highlighting how private capital can benefit stakeholders. From long-term investors to growing businesses and the broader economy, private markets continue to play an important role in driving innovation, supporting job creation, and strengthening communities across the country.

To emphasize the importance of private capital, the AIC has released a series of reports detailing the economic contributions of both private equity and private credit. We have also published research which shows how private equity investment can not only fuel business growth but also deliver tangible benefits to employees. These investments can help companies expand, modernize, and compete in today’s dynamic economy.

Beyond tax policy, the AIC advocates on a wide range of issues. This includes working with lawmakers across the country to help them better understand how private capital can support healthcare organizations by expanding access to treatment through investment in new technologies, developing innovative therapies, opening new facilities, and improving the quality of care. We are also educating policymakers on how private capital can help expand access to affordable, high-quality housing.

In private credit, the AIC continues to engage policymakers on the value of alternative lending structures that complement traditional financing. These structures can expand access to capital while fostering growth, innovation, and opportunity for the many businesses and communities that need it.

Private markets are entering a new frontier. For decades, institutional investors and high-net-worth individuals have benefited from strong risk-adjusted returns and portfolio diversification through private market investments. A recent Preqin survey found that the vast majority of institutional investors plan to either maintain or increase their allocations to private equity and private credit, reflecting their confidence in the long-term value of these asset classes.

While the private equity industry faces near-term headwinds, including elevated interest rates and broader economic uncertainty, it continues to adapt. Firms are retooling strategies, enhancing portfolio operations, and preparing for renewed growth. NAV financing and continuation vehicles have helped investors achieve liquidity while preserving long-term upside. Growth investments in the middle and lower middle markets are clear examples of how private capital continues to be deployed despite challenging conditions. Many private equity managers have demonstrated their ability to navigate uncertainty.

Meanwhile, private credit continues to perform well. As the asset class has grown, managers have developed increasingly innovative financing solutions tailored to a wide range of borrowers. Its flexibility allows both small businesses and large investment-grade companies to access capital that helps them respond to changing economic conditions. For investors, private credit offers the opportunity to capture the illiquidity premium and earn attractive yields, supported by managers with strong underwriting expertise.

Historically, individual investors have had limited access to private markets. But that is beginning to change. Asset managers are now designing fund structures – such as evergreen and interval funds – that offer limited liquidity while responsibly expanding access. These efforts are broadening participation in private markets in a measured and sustainable way. Institutional investors have long understood that private markets offer exposure to growing, innovative companies that are often unavailable in the public markets.

The American Investment Council will continue its work to ensure that policymakers understand the vital role private markets play in financing businesses across the US. Private capital can be a driver of economic growth, resilience, and innovation – and will remain essential to shaping a more prosperous future.

About
Jamal Hagler serves as Senior Vice President of Research at the American Investment Council (AIC), producing reports on investment trends, fund performance, sector-specific investment, and returns to pension funds. The AIC is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the US economy and retirement security of American workers.

_{This is a sponsored opinion by the American Investment Council (AIC). The views expressed are provided as of July 2025, do not constitute an endorsement, recommendation, or any other advice, and are subject to change. The following content does not necessarily reflect the views of BlackRock, Preqin, or any of its affiliates. the AIC is not affiliated with Preqin. Preqin received compensation from the AIC in exchange for publishing this content.}