A recent resurgence of private equity stories in the press is casting new light on the various strategies and potential benefits of private equity investing. One such strategy, “in-state” private equity investing, which involves geographically focused and returns-oriented investments, falls under the more widely known category of economically targeted investment programs.
ETI programs, also known as dual-purpose or impact investing, have prevailed for decades and throughout many economic cycles. Managed properly and with the appropriate resources, in-state programs — typically private or public assets applied to targeted investing at a state or regional level — are a proven model for states and pension funds seeking competitive, risk-adjusted returns. In an era of sluggish economic growth, 30-year high unemployment and uncertain investment returns, in-state private equity ETIs can contribute to the macroeconomic solution and achieve sought-after returns.