 |
Nearly half
of firms said that with private equity backing their
level of investment was higher than would have otherwise
been possible. |
|
81% of the companies could
not have existed or would have grown less rapidly
without private equity. |
|
Over three-quarters of the
companies felt that the private equity firms had
made a major contribution in addition to the provision
of money. |
|
Other major contributions
cited by private equity backed companies included
private equity firms being used as a sounding board
for ideas, challenging the status quo, for their
financial advice, guidance on strategic matters
and their contacts and market information. |
|
A recent survey of over
170 private equity backed companies, commissioned
by the BVCA, assessed “The Economic Impact
of Private Equity in the UK” Nov 2003, showed
that over a five year period, on average private
equity backed companies increased their: |
|
sales by 30% p.a., more
than three times that achieved by FTSE 100 companies. |
|
exports by 20% p.a., compared
with a national growth rate of just 2.9% p.a. |
|
investment by 25% p.a.,
compared with a national increase of 2.3% p.a. |
|
the number of people employed
increased by an average of 23% p.a., against a national
private sector employment growth rate of just 1.5%
p.a. |
