Private Equity Activity Strongest in the Southern US
According to Axial Market, private equity firms continue to put more of their money to work down south. In 2012, 1,931 deals were originated in the Southern US, versus only 759 in the Northeast, and 843 Midwest.
This mirrors the general economic growth trends across the country. The costs of starting and growing a business are lower in the south and west, versus the northeast and midwest, generally speaking. And taxes are also generally lower, leaving more capital available for owners to plow back into growing their businesses.
Having served clients in 47 states, and from an anecdotal perspective, we have seen similar trends with our clients. There are substantial differences in costs, taxes and regulations among regions, states, and cities, and we expect these differences to widen over the near term.