The Importance and Future Development of the Venture Capital Industry: A Scenario Analysis (Swedish Private Equity & Venture Capital Association (SVCA))

Summary

• Private equity portfolio companies directly and indirectly employ approximately 250 000 people, representing 4.8% of total employment in Sweden.p.5
• Including employment related to managing entities, Swedish private equity ownership supports approximately 260 000 jobs.p.5
• The total value added contribution of portfolio companies to the Swedish economy is SEK 313 billion, which represents 5.9% of GDP.p.5
• Out of over 1 200 portfolio companies analyzed, 166 or nearly 14% have research as part of their registered business activities.p.5
• Between 2007 and 2022, private equity firms invested SEK 495 billion across 3 976 Swedish companies.p.12
• Nearly 90% of the capital raised by Swedish private equity firms originates from investors outside of Sweden.p.12

Key insights

1. Private equity ownership increases portfolio company productivity by an average of 22% over a 7-year period.p.8
2. Total payroll in portfolio companies reaches SEK 152 billion, contributing SEK 58 billion in employer taxes and income tax.p.5
3. Private equity management firms and their direct service ecosystem employ approximately 10 000 people.p.15
4. Maintaining current private equity investment momentum could generate an annual GDP contribution of over SEK 300 billion by 2050.p.6
5. Sweden ranked second in Europe for impact venture capital investments and third for deep tech investments in 2023.p.11