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Private equity is a cornerstone of Europe’s economy and society. Over the past four decades, European private equity and venture capital has grown from a niche segment of the finance industry into a central element of Europe’s efficient capital markets and its healthy asset management universe.
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Invest Europe has been at the industry’s side every step of the way, educating, informing, and safeguarding the industry’s reputation, while providing a forum for practitioners to meet and learn.
On the occasion of the 40th Anniversary of the organization, Invest Europe members and business leaders answer three questions about the past, present and future of the industry.
As the industry matures, it continues to innovate, and that unlocks investment opportunities for us all the time. We've seen GP-led transactions accelerating, but today, often GPs are trying to understand what they can do with portfolio financing and fund financings to provide liquidity for LPs or to actually use it to grow their existing portfolio, and that's exciting. Private Equity helps to create jobs. Today, more than 10 million people are working for private equity-backed companies in Europe, and it's an important source of capital. It fosters Innovation through venture and growth capital, and it helps to transform mature companies into better companies.
First, we don't control companies; we invest alongside our GPs, but we are seeking to influence and to progress the industry on issues of diversity, equity, inclusion, and climate. Just to give you one example, of the funds that we committed to last year, 45 percent had a top score in a proprietary responsible investment ranking, and only five years ago there was 10 percent. So there is progress.
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