Private equity firms have invested almost €250bn (£213bn) in businesses across Europe over the past five years, boosting innovation and productivity, it has been claimed.
In the 12 largest private equity markets in Europe, private equity pumped money into more than 19,400 companies between 2007 and 2012 and spurred the creation of a further 5,600 each year, according to a study by the consultancy Frontier Economics. The research also showed that 83 per cent of these are small and medium-sized businesses – the "engines of economic growth". Sectors attracting the most investment include life sciences and communications.
Vincenzo Morelli, the chairman of the European Private Equity and Venture Capital Association, said: "In light of the economic challenges we face in Europe, these findings clearly demonstrate that private equity has an indispensable role to play in delivering responsible, stable investment to companies of all sizes across Europe, regardless of the economic cycle."
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