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Private Equity at Work Report by Invest Europe
- PE and VC-backed companies created 451,511 jobs, a 7.2% increase, beating 2% growth for all European business
- PE and VC-backed companies employed 10.9m in 2022, 5% of European workforce
Brussels, Belgium – Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure 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 companies created 7.2% more jobs in 2022, more than 3.5 times the overall European growth rate, the fifth straight year of positive job creation well in excess of the European average.
- Private equity and venture capital portfolio companies created 451,511 jobs in 2022, roughly equivalent to the entire working population of Latvia. All segments of the industry recorded job creation rates well ahead of the European average, led by venture capital-backed companies which added 18% more jobs, representing 83,966 new workers hired. Buyout-backed portfolio companies created most new jobs, hiring 242,334 more people, a 6% increase
- The industry supported 10.9 million workers across the continent at the end of 2022, equating to 5% of the continent’s workforce and more than the population of the Czech Republic. Buyout firms backed 5.5 million workers, roughly three times the working population of Berlin, while jobs supported by the VC segment exceeded 1 million for the first time in our study
Invest Europe’s Private Equity at Work goes beyond the headline figures to show where private equity and venture capital is making a difference, whilst providing essential context to understand the data. The Nordics was the fastest growing region for employment in 2022, adding 9.5% more jobs, led by 12.5% growth in its largest market: Sweden. Meanwhile, companies in Central and Eastern Europe had the greatest outperformance of their local region, adding 6.6% more jobs, more than seven times the 0.9% growth across all CEE. Amidst an ongoing invasion, Ukraine managed to contribute to job creation, as investors and managers backed companies with the resources to survive and grow.
The study also segments employment and job creation by sector, illustrating private equity and venture capital’s influence in industries at the heart of a more competitive and sustainable Europe. The Information & Communications Technology (ICT) sector was the third-largest employer and the fastest-growing in 2022, adding 13.8% more jobs. The Biotech & Healthcare, Energy & Environment, and Financial & Insurance Activities sectors all recorded high-single-digit employment growth in 2022, underlining European private equity’s strength in vital growth industries.
Eric de Montgolfier, CEO of Invest Europe, commented:
“When we first published our Private Equity at Work report our aim was to set the record straight on employment and show that private equity and venture capital does not destroy jobs, but rather creates them. The data speaks for itself and demonstrates what the industry really can deliver, from year to year and over longer time frames.”
“Wherever you look, European private equity and venture capital is investing to create jobs, thereby supporting businesses and economies, as well as people and communities. It is fuelling innovation and talent, and taking a lead on sustainability and the skills needed. This is an industry entirely focused on sustainable value creation.”
Now in its fifth year, Private Equity at Work analyses employment and job creation data going back to 2017, a period that has been one of the most challenging in living memory, marked by pandemic lockdowns, conflict in Ukraine, and rising inflation and interest rates – all against the backdrop of the climate crisis. The report illustrates the compound effect of private equity and venture capital investment on job creation across regions, investment segments, and industry sectors.
Venture capital-backed companies supported the creation of an average of 18.8% more jobs, effectively doubling employment at the companies in our sample over the five years to 2022, while buyout portfolio companies employed on average 3.5% more people at their companies each year. ICT companies created an average of 12.5% more jobs annually over the period, and added the most jobs of any sector in absolute terms.
European private equity and venture capital-backed companies’ job creation correlates strongly with the industry’s growing financial support for companies, as €553 billion was invested in 30,132 companies over the last five years.
To download the full Private Equity at Work report, please click here.
About Invest Europe
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 trillion of assets under management. Businesses with private capital investment employ 10.9 million people across Europe, 5% of the region’s workforce.
For more information visit www.investeurope.eu
