Yet another independent study has found that private equity benefits the economy, portfolio companies and investors. The research, by Adveq, shows that private equity helps growth by providing funding to SMEs and supporting them in becoming more efficient and professional.
The paper explains how private equity as an asset class and established investment option has a clear and demonstrable positive effect on the European economy. This can be seen from a general perspective, from the perspective of individual companies under private equity ownership and from the point of view of investors.
Private equity is less volatile than public markets and the long-term nature of private equity investment better matches the needs of institutional investors, the study said.