PE and VC-backed companies created over 103,000 jobs in Europe in 2020, report finds
European companies owned by private equity and venture capital grew their workforces by 2% in 2020 in a year when the Covid pandemic led to the overall European workforce contracting by 1.6%.
That was the key finding of a new report, Private Equity at Work, from Invest Europe, the pan-European trade body for the PE, VC and infrastructure sectors.
The third edition of the annual report found that PE and VC-backed companies created over 103,000 jobs in 2020, particularly in the technology, fintech and finance, and biotech and healthcare sectors.
Just short of 10m jobs in Europe in 2020 were with 24,663 PE or VC-backed companies, equivalent to 4.3% of the total European workforce.
VC-backed companies created new jobs for 86,258 workers between 2017 and 2000, while companies that had been bought out by PE firms hired 221,694 more people – an increase of 11%.
Generalist PE firms that invest in businesses across all stages of development added 15% more jobs, or 205,726 extra workers.
Eric de Montgolfier, chief executive of Invest Europe, said: “The pandemic did impact European employment and private equity and venture capital-backed businesses could not entirely escape the effects.
“However, there can be no doubt that the industry’s long-term investment and hands-on operational approach builds better businesses and creates jobs year in, year out.”
To contact the author of this story with feedback or news, email Mark Latham
Credit: Source link
Comments are closed.