The companies that are owned by private equity will typically have long term and knowledgeable owners, increasing their competitiveness. See PE partnerships improve the performance of their portfolio companies

Also the investors, typically public and private pension funds, endowments and foundations, receive returns that beat the public market indices. See Why should you invest in private equity?

For economic growth, private equity create higher economic growth than other ownership structures, and also result in increased job creation, increased capital expenditures, increased productivity and increased innovation.