Private equity and venture capital-backed companies create 5% more European jobs in 2023; 5x Europe’s job-creation rate

• PE and VC-backed companies created 339,149 jobs, a 5% increase, beating all-Europe job growth for 6th consecutive year

• PE and VC backed companies employed 11.2m in 2023, or 5% of entire European workforce

Brussels, Belgium – Embargoed until 1100 CET Tuesday 29 April 2025 - Invest Europe, the association representing Europe’s private equity, venture capital, infrastructure and listed private equity sectors, as well as their investors, today published its Private Equity at Work report, tracking employment and job creation across Europe. The in-depth study shows that private equity and venture capital backed-portfolio companies created 5% more jobs at their companies in 2023. This marks the sixth consecutive year of positive job creation, significantly outpacing the European job creation rate. Companies backed by private equity and venture capital across all regions and stages are consistently outperforming the average.

• Private equity and venture capital-backed companies created 339,149 jobs in 2023, roughly equivalent to the working population of the greater city of Bilbao, Spain. All regions recorded consistent job creation, from 4% in France & Benelux to 8.4% in Southern Europe. 

• Private equity and venture capital-backed companies supported 11.2 million workers across the continent at the end of 2023, equating to 5% of the continent’s workforce of 240 million, or more than the entire population of Sweden. Buyout backed businesses employed 5.7 million workers, while the VC stage supported almost 1 million employees. The research showed 28,610 companies backed by private equity and venture capital across the entire region.

Invest Europe’s Private Equity at Work demonstrates the positive impact of private equity and venture capital on job creation across sectors. It showcases how the industry’s investments and operational support are driving advancements in sustainability, technology, and healthcare in Europe. In 2023, the Energy & Environment sector led in job creation, adding 9.5% more jobs. The Information & Communications Technology (ICT) sector increased jobs by 5.8%. Additionally, the Biotech & Healthcare sector surpassed the European private equity average, with a 5.5% uptick, or 49,000 new workers.

Now in its sixth year, Private Equity at Work tracks the cumulative impact of private equity and venture capital backing on job creation going back to 2017, showing strong and consistent growth despite economic headwinds and geopolitical uncertainty. The data shows that ICT was the most dynamic sector for job creation, with 11.2% average annual job creation over the seven-year period. Financial & Insurance Activities grew at an annual rate of 8.3%, highlighting Europe’s position in disruptive fintech. Meanwhile, Biotech & Healthcare showed a consistent job creation rate of 5.2% per year.

Eric de Montgolfier, CEO of Invest Europe, commented:

“Private equity and venture capital firms are focused on growth, and people are their most valuable asset. Every industry stage and region experienced job creation well above the European average, highlighting the sector's commitment to driving progress.”

“From companies driving the energy transition, including infrastructure, to those innovating in AI, deep tech, and biotech, private equity and venture capital are crucial for growth and job creation. This industry is not only positioned to support Europe’s strategic goals in innovation, competitiveness, and sustainability, but it is already empowering businesses with the investment, talent, and skills needed for a stronger, more sustainable future.”

Private Equity at Work drills down into statistics in European sub-regions to show the highest percentage job creation in the Akershus region surrounding the Norwegian capital Oslo (+37%). Many sub-regions, including Hungary’s Southern Transdanubia (+27%), Germany’s Thuringia (+19%), Spain’s Valencian Community (+16%), Ireland’s Munster (+12%) and France’s Burgundy (+11%), also recorded strong double-digit job creation.

The report shows how capital raised by private equity and venture capital firms is being deployed to support jobs and communities domestically and cross-border. With almost 4.2 million people employed, the France & Benelux region accounts for about 37% of all private equity- and venture capital-backed employment in European companies.

The report also continues its sharp focus on the SME segment, Europe’s economic backbone. There were 21,536 private equity and venture capital backed SMEs across Europe in 2023, employing more than 1 million people in total. Those businesses grew faster than the European private equity average, creating 6% more jobs in 2023, with larger companies in the segment growing at the highest rates.

To download the full Private Equity at Work report, please click here.

-ENDS-

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Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors. We have over 650 members, split roughly equally between private equity, venture capital and limited partners – with some 110 associate members representing advisers to our ecosystem. Those members are based in 57 countries, including 42 in Europe, and manage 60% of the European private equity and venture capital industry’s €1.15 trillion of assets under management. Businesses with private capital investment employ 11.2 million people across Europe, 5% of the region’s workforce.

Disclaimer: The content is for informational and research purposes only. It does not constitute financial advice, investment guidance, or a solicitation to buy or sell any financial products or services. Invest Europe is a non-profit organisation dedicated to research, policy insights and reputation management. Any references to investment, finance, or related topics are based on specific and verifiable data and presented strictly within a research and educational context.