Private equity’s edge: Middle market firms with PE backing report stronger growth and margins

New NCMM survey finds stronger growth, margins and preparedness among PE-backed
companies — despite higher capital costs and governance trade offs

COLUMBUS, OHIO — The National Center for the Middle Market (NCMM) at The Ohio State University Max M. Fisher College of Business has released new data showing that U.S. middle market companies with private equity (PE) backing are outperforming their non􀀀PE peers on multiple dimensions, including revenue and employment growth, profitability, access to capital and readiness for disruption.

A survey of more than 400 financial decision makers at U.S. private companies with $10 million to $1 billion in annual revenue revealed that majority of PE-owned companies achieved double-digit gains in multiple areas:

• 61% of respondents recorded more than 10% revenue growth over the past year (vs. 50% of non-PE)
• 41% reported better than 10% workforce growth (vs. 28%)
• Average EBITDA margins were 13.7% for PE-backed firms compared to 12.3% for non-PE-backed firms

The trends held true for future forecasts as well:

• PE-backed leaders were more likely to project greater than 10% revenue growth (49% vs. 35%) and employment growth (43% vs. 32%)
• PE-backed leaders were more inclined to say they are “very prepared” for disruption (38% vs. 19%) with a very optimistic outlook (45% vs. 35%)

Executives cited access to growth capital, faster decision􀀀making, operational improvements, professionalized management and margin improvement among the top benefits of PE involvement. Tradeoff s and drawbacks reported by the leaders included a higher cost of capital, pressure to meet short-term performance targets and reporting/complexity.

Additionally, concerns around loss of control, cultural misalignment, and investor expectations remain prevalent, with 38% of PE-owned fi rms citing autonomy and governance trade-off s as significant drawbacks.

The research also rebuts a common misconception: headcount growth is more — not less — prevalent among PE-backed fi rms, with 64% reporting workforce increases year-over-year versus 49% of non-PE companies.

“This research underscores a consistent pattern we’ve tracked for years: in the middle market, private equity backing can serve as not only a source for growth capital, but also as a partner for operational efficiency,” said Doug Farren, executive director of the NCMM. “The message for leaders is to assess fit― where PE or private credit aligns with long-term strategy, it can serve as a catalyst for growth.”

The data was collected in July 2025 with funding support from Future Standard, formerly FS Investments. The sample includes 277 PE-owned vs. 130 non􀀀PE companies and 298 private credit users vs. 109non􀀀PC; because many fi rms use both, there is substantial overlap (84% of PE fi rms also use PC; 79% of PC users also have PE ownership).

About the National Center for the Middle Market (NCMM)

The National Center for the Middle Market is a research center housed at The Ohio State University Fisher College of Business. It exists for a single purpose: to ensure that the vitality and robustness of middle market companies are fully realized as fundamental to our nation’s economic outlook and prosperity. The center is the leading source of knowledge, leadership and innovative research on the middle market economy, providing critical data analysis and insights for companies, policymakers and other key stakeholders. The NCMM is fully committed to dynamically creating new knowledge, providing programs that drive value for middle market companies and offering a well-informed outlook on the health and future of the middle market via the Middle Market Indicator. The NCMM and its Middle Market Indicator are generously funded by Chubb, Visa and Wells Fargo.

About The Ohio State University Max M. Fisher College of Business

The Ohio State University Max M. Fisher College of Business provides tomorrow’s business leaders with the foundation needed to succeed in business today. Fisher students experience an academically rigorous learning environment, led by world-class faculty, which fosters their development as principled leaders who possess an entrepreneurial spirit, global awareness and a commitment to social responsibility. Organizations from around the globe thrive under the leadership of Fisher alumni, who positively impact their communities and the world.