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What's the role of private equity and venture capital in Europe?
Building strong, profitable businesses.
Generating employment
Funding technology and innovation
Funding the energy transition
Delivering strong returns to investors
During my career I've watched the industry grow from being what was a cottage industry 25 years ago to being a fully fledged nearly 10 trillion asset class and I think what I've noticed is how the industry has really differentiated itself from the alternative and more traditional types of finance and it does that one by having a very longterm outlook and two by focusing not on just investing in businesses and providing capital but really helping to build and support those businesses and to grow better businesses there and by doing that it's created some of the best known companies in the world and has generated very very substantial returns for investors.
So the industry's key role is building very strong profitable businesses. As it does that it's been very good at generating significant amounts of employment across Europe. Other roles that has played have been funding technology and innovation as well as funding the energy transition which is one of the key industries in Europe today. The final role that it plays has been helping investors to achieve their investment objectives by delivering very high returns as part of their return portfolio.
The industry going forward I think will continue to be its role as patient capital with its very longterm focus on building better businesses. As part of that it will continue to fund innovation and technology and many of the new emerging technologies such as artificial intelligence robotics Quantum Computing have all been funded by private capital. The second thing I think it will do is to play an increasing role in funding energy transition where it's been very important in providing capital to the energy transition industries and most importantly I think we'll see a shift as more private investors become involved in the industry and it will open up from being purely focused on institutional investors to private investors and that will help those investors also access the returns that the IND history has generated historically.
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