How Foreign Investment Powers Chicago’s Economic Growth

Foreign direct investment (FDI) continues to shape Chicago’s economic landscape, driving growth, innovation, and industry transformation.

Today, World Business Chicago’s Research Center released new insights on trends in FDI in Illinois startups and companies. The report highlights key global players, major investments, and untapped opportunities that underscore Chicago’s position as a magnet for international capital.

Top Investor: United Kingdom

Illinois-headquartered startups and companies benefit from a diverse range of international investors, including the United Kingdom, Canada, Germany, France, India, Singapore, and Switzerland—reflecting a truly, global mix.

Among these, the United Kingdom leads the way as the top foreign investor, underscoring its pivotal role in driving economic growth and strengthening ties with the region.

Pictured above, Chicago Mayor Brandon Johnson and a business delegation engaged with UK counterparts to strengthen international business ties and investment opportunities. As the United Kingdom remains the top foreign investor in Illinois-headquartered companies, the delegation underscored Chicago’s role as a global economic leader. This high-profile mission in October 2024 highlighted key achievements, including Lagfin’s commitment to invest $200M+ in Chicago and strategic discussions with English Premier League CEO Richard Masters about expanding the league’s presence in the city. The agenda also featured a quantum economy roundtable and meetings that spotlighted Chicago’s leadership in manufacturing, logistics, and other high-growth industries.

Top 5 Investors

Among 1,234 deals analyzed between 2019 and Q3 2024 tracked by Pitchbook, the top 5 foreign Investors by deal count in Illinois-based companies included:

• United Kingdom: 195 deals
• Canada: 190 deals
• India: 69 deals
• Singapore: 68 deals
• Switzerland: 59 deals

Furthermore, among over 6,000 companies tracked by Pitchbook with a secondary office location in Chicago, 884 of these companies are headquartered abroad.

1.     United Kingdom: 187 companies

2.     Canada: 130 companies

3.     Germany: 60 companies

4.     France: 56 companies

5.     India: 47 companies

Key Deals That Are Helping to Reshape Industries

Several transformative investments underscore Illinois’ global relevance. Some of the largest deals since 2019 involving foreign investors include:

• A 2022 LBO of CDK Global for $8.3 billion by Brookfield Business Partners. CDK Global provides retail technology and SaaS solutions to the automotive industry, emphasizing the state’s strength in software innovation for key growth sectors.
• Groupe Lactalis’ $3.2 billion acquisition of Kraft Heinz’s cheese business in 2020 highlights Illinois’ food production expertise.
• A 2023 $8.1 billion LBO of Univar Solutions, a distributor of commodity and specialty chemicals and ingredients, by Apollo Global Management, Abu Dhabi Investment Authority, and ACE & Company.
• Medline’s $34 billion LBO by U.S.-based private equity firms in 2021. Investors involved are from the UAE, Singapore, and the U.S., illustrating international confidence in Illinois’ healthcare and logistics sectors. Medline has since recently taken steps towards an IPO.

Opportunities on the Horizon

The Research Center at World Business Chicago has also identified opportunities for stronger investment between Chicago and the world. By looking at dry powder for foreign investors who have previously invested in an Illinois-based company, we see where perhaps more foreign capital is available for local startups and companies.

While the UK and Canada dominate, emerging players like France, Sweden, and the UAE present opportunities to deepen international ties and expand investment. These countries hold billions in untapped capital, allowing Illinois to diversify and attract investment in high-potential sectors like quantum computing and sustainability.

“Dry Powder” Totals for Previous Investors in Illinois Companies by Country

• United Kingdom: $176.1 billion
• Canada: $104.3 billion
• France: $99.3 billion
• Sweden: $68.7 billion
• United Arab Emirates: $62.0 billion

Looking Ahead

Illinois’ success in attracting foreign direct investment is a testament to its unmatched economic diversity, strategic location, and exceptional talent pipeline.

World Business Chicago is driving Chicago’s economic future by leveraging data, collaborating with its influential board members, and engaging a robust business network to attract transformative capital. By fostering global partnerships and showcasing the city’s unique strengths, World Business Chicago is solidifying Chicago’s position as a premier destination for foreign direct investment and a global leader in business growth and innovation.

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