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The Economic Footprint of Swedish Venture Capital and Private Equity (Swedish Private Equity & Venture Capital Association (SVCA))

ReportSwedish Private Equity & Venture Capital Association (SVCA)November 202242 pages63 min readOriginal source
Key number
296 SEK billion
Total PE investments into Swedish companies over 10 years p.2
Largest segment
82.1%
Share of Swedish PE investment value in Buyout PE p.6
What changed
3.5%-4.7%
Permanent increase in Swedish GDP from PE and VC investments p.2

Summary

  • Total private equity investments permanently increase Swedish GDP by 3.5%-4.7%.p.2
  • Over the last 10 years, SEK 296 bn was invested into Swedish companies, of which SEK 37 bn was invested by VC funds.p.2
  • Five years after initial VC investment, VC-backed companies experience turnover growth rates between 13-23%, compared to 3% for average small-midcap companies.p.3
  • ICT and life science account for 70% of VC and growth capital investments in Sweden, despite representing almost 9% of the total economy.p.10
  • Private equity ownership increases portfolio company added value by 62% and operating profit (EBITDA) by 53% after exit.p.13
  • Activity in the Swedish PE sector supports around 4,300 jobs, including 1,200 direct employees at PE firms.p.25

Key insights

  1. PE ownership increases profitability (EBITDA) of portfolio companies by 53%.p.2
  2. Buyout PE accounts for 82.1% of investment value by Swedish PE funds between 2012 and 2021, while venture capital accounts for 9.9%.p.6
  3. Among major Nordic VC funds, 45% of all VC investments generate a loss, while 4% generate a return ten times the invested amount.p.8
  4. Portfolio companies under PE ownership experience an average productivity boost of around 22% after 7 years.p.12
  5. The return of European buyout funds from 1987 to 2020 was 3.1 times the return of the MSCI Europe index.p.14
  6. Swedish PE-backed companies employ up to 240,000 people and account for an estimated 5.2% share of GVA.p.18
  7. Measured as a share of GDP, Sweden has the second largest PE market in the EU at 2.0%, behind Luxembourg at 4.1%.p.24
  8. Portfolio companies backed by Swedish PE achieved a 7% job creation rate in 2019-2020, compared to a European weighted average of 3%.p.26

Topics and entities

EuropeNordicsPrivate equityPrivate marketsStartup fundingVenture capitalCopenhagen EconomicsEQTInvest EuropeSwedish Private Equity & Venture Capital Association

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