The Finance Shelf

Private Equity at Work: Employment & job creation across Europe (Invest Europe)

ReportInvest EuropeApril 202464 pages96 min readOriginal source
Key number
10.9 million employees
Private equity-backed workforce in Europe p.6
What changed
+7.2% %
Net job growth rate vs European average p.7

Summary

  • Private equity-backed European companies employed 10.9 million people in 2022, representing 5% of Europe's total workforce of 236 million.p.6
  • Net job creation in private equity-backed companies reached +451,511 jobs in 2022, representing a 7.2% increase compared with 2% growth in European companies overall.p.7
  • Venture capital-backed companies achieved the highest growth rate, increasing employment by 18% and creating 83,966 net new jobs in 2022.p.7
  • European SMEs backed by private equity employed 938,496 people across 20,349 companies in 2022.p.6

Key insights

  1. Private equity and venture capital firms created 451,511 net new jobs in 2022, representing a 7.2% employment growth rate.p.3
  2. European private equity-backed companies employed 10.9 million people in 2022, accounting for 5% of the total workforce.p.3
  3. Venture capital-backed companies expanded employment by 18% in 2022, creating 83,966 net new jobs.p.3
  4. Buyout investments drove the highest absolute job creation with 242,334 new jobs added in 2022, a 6% increase.p.3
  5. The Nordics recorded the highest regional job creation rate in 2022 at 9.5%, led by Sweden with a 12.5% increase.p.3
  6. Private equity firms invested €553 billion in European companies over the five-year period from 2018 to 2022.p.9
  7. Pension funds and insurance companies directly committed €206 billion to European private equity between 2018 and 2022.p.9
  8. Private equity-backed SMEs added 62,234 new jobs in 2022, achieving an employment growth rate of 12.4%.p.33

Topics and entities

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