Building better businesses
Private equity makes long-term investments into small, medium and large companies with the aim of making them bigger, stronger and more profitable.
Specialist investment managers with intimate knowledge of running companies help to build better businesses by strengthening management, improving operations and expanding into new markets. The profits of the improvement are shared among the underlying investors and the specialists whose skills contributed to the company's success.
Venture capital is private equity investment that is focused on start-up companies. VCs back entrepreneurs who have bright ideas but need finance and expertise to get their companies off the ground and grow.
What is private equity video (02:21)
How does private equity and venture capital work?
Private equity and venture capital provides capital and expertise for businesses, giving them all the tools they need to grow and prosper.
Through private equity, institutional investors, such as pension funds and insurance companies, can invest in private companies that have the potential to deliver strong returns over the long run.
The impact of private equity
Impact for businesses
Private equity supports the ambitions of privately-held companies by providing them with capital, and active hands-on management support.
Impact for investors
Private equity creates investment growth for a wide range of investors including pension funds and insurance companies, delivering strong returns for their beneficiaries.
Impact for society
By helping build better businesses private equity has a profound impact on the economy and society, creating jobs, developing new skills, and investing in new technology.
A Different Angle: Funding people, with purpose
‘A Different Angle’ is an online film series exploring the role of private equity and venture capital in European society. This unique film series, presented by Invest Europe, the world’s largest association of private capital providers, and produced by BBC StoryWorks Commercial Productions, brings to screen the human stories at the heart of the businesses that are driving change and fuelling growth through private capital.
Find out moreSuccess stories
More about private equity
Why join?
Invest Europe membership offers your firm exclusive access to our industry-leading events, globally trusted research and expert regulatory advice. Find out how joining the world’s largest private equity association can benefit you and your organisation.
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