PE HUB Wire Highlights, 10.22.19

Vista raises $700 mln for third credit fund; Hercules founder pleads guilty; AIC responds to negative PE attacks

We finally have some sort of response to the attacks against private equity.

The American Investment Council, the PE industry’s biggest lobbying group, is launching a website and an advertising campaign to educate Americans about the good private equity has done for the nation. This includes creating jobs, driving economic growth and supporting local communities. There’s also a new report prepared by EY for the AIC that highlights the positive impact that private equity has on the U.S. economy.

According to the report, the U.S. private equity sector directly employed 8.8 million workers in 2018, who earned $600 billion in wages and benefits. The average U.S. PE worker earned about $71,000 in wages and benefits in 2018, or about $36 an hour. The U.S. PE sector directly generated $1.1 trillion of value added — which measures a sector’s or industry’s contribution to the production of final goods and services produced in the U.S. or U.S. GDP — or about 5 percent of the nation’s estimated $20.5 trillion in GDP last year.

I’m happy the AIC has stepped up to the challenge and come up with some sort of strategy to counter the negative attacks. But is this enough? The Toys ‘R’ Us debacle is still fresh in people’s minds. Then, there’s Sen. Elizabeth Warren and her plan to “regulate private equity,” as well as other investigations of PE’s role in for-profit education, prison services and surprise billing. I’m really hoping there’s more. Hubsters, what do you think? What more should the PE industry do? Email me your thoughts at lbeltran@buyoutsinsider.com.

We also have an update on the college admission scandal. Manuel Henriquez, founder of venture debt shop Hercules Capital, will plead guilty for his involvement in the “varsity blues” college admissions scandal, Rebecca Szkutak is reporting.

FundsPeter Thiel’s venture capital firm is raising $3 billion for two funds, including its first dedicated pool for late stage companies, the Wall Street Journal reported.

TPG Sixth Street Partners said its first Capital Solutions fund closed on about $2.2 billion of total third-party commitments. Capital Solutions makes non-control investments in growth-oriented companies. Read our brief here.

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