From the CEO

For the sixth successive year of Invest Europe’s Private Equity at Work report, private equity and venture capital backed companies created jobs far in excess of the overall European economy. Companies in our universe increased employee numbers by 5% in 2023, well ahead of the 1% growth seen across all businesses. 

2023 was a year – like many in recent history – marked by economic uncertainty. High inflation and rapidly rising interest rates were fierce headwinds. However, companies backed by private equity and venture capital doubled down on their commitments to people. Our data shows that, businesses created 339,149 jobs in 2023 and roughly equivalent to the working population of the greater city of Bilbao. Venture-stage companies added 9% more jobs, while buyout-stage businesses added 5% more staff.

There was not one stage of European private equity and venture capital that did not witness employment growth far ahead of that benchmark, nor one region of Europe where the industry’s investments did not beat the regional growth rate, or in some cases its contraction. This unequivocally says that, in the drive to build better businesses, private equity and venture capital firms are focused on growth – and see people as instrumental to that growth.

And, as previously stated, every region created positive employment growth at multiples of what the local market achieved – from 8.4% employment growth in Southern Europe to 4.7% in the UK & Ireland. The impact of private equity and venture capital commitment is clear – and inspiring. 

Growth is being created in companies that will drive European sustainability, technological sovereignty, and improvements in health. The Energy & Environment sector was the fastest-growing sector for employment in 2023, adding 9.5% more jobs, while Information & Communications Technology (ICT), the third-largest sector overall, added 5.8% jobs.

Growth is a powerful lever for European development. But so is scale, and European private equity and venture capital is showing that it has reach and influence across Europe. Companies backed by our industry employed 11.2 million people at the end of 2023 – more that the entire population of Sweden. Over 3 million are employed in both Business Products & Services, and Consumer Products & Services – and more than 1.6 million in ICT industry and over 1.3 million in Biotech & Healthcare – indicating huge pools of talent to drive innovation and growth.

Since we created this report six years ago, the debate – and the priorities – have evolved. More and more, we are talking about private equity and venture capital in terms of job creation, long-term value creation, and indeed strategic priorities. This industry is an ally to European strategic goals, providing companies with the investment, people, and skills to ensure that Europe has a stronger and more sustainable future.