Economic impact data
Showing private equity’s economic impact
Private equity investment has a significant role in the economy. Institutional investors such as pension funds and insurers supply private equity with capital, which private equity managers invest in portfolio companies. The returns from these investments are used by the institutional investors to meet their long-term liabilities which could be an insurance claim or pension.
Since 2007, European private equity has backed in excess of 21,000 portfolio companies, to the tune of more than € 271 billion. The companies range from innovative start-ups needing capital to grow to mid cap businesses looking to take the next step in their development and struggling companies that need help to get back to growth, as well as larger businesses.
Invest Europe regularly publishes data on private equity fundraising, investment and divestment across industry sectors. It also studies and encourages academic research to show private equity’s economic impact at portfolio company level. Invest Europe commissioned Frontier Economics to produce an independent report on the contribution private equity can make to growth. As well as pointing the way for future research, it found that private equity investment boosts innovation, productivity and competitiveness.