TMCnet News
New study from Gain.pro - Private equity: Job killer or growth booster?A novel study debunks the myth that Private Equity (PE) ownership negatively impacts companies and their workers. In fact, businesses owned by PE on average outperform family-held businesses on key metrics. They grow revenue twice as fast. But also invest more into their business and grow employment at a faster pace. LONDON, March 18, 2024 /PRNewswire/ -- Landmark bankruptcies and restructurings such as those involving Four Seasons Healthcare (UK), Windreich (Germany) and Alteo (France) have created a challenging narrative in Europe around PE-ownership. In response, politicians like Jeremy Corbyn in the UK have spoken out against further growth of the sector, fearing job losses and financial instability.
Private market intelligence provider Gain.pro, recently conducted a landmark study proving these isolated cases making headlines are far from representative. Analyzing over 15,400 PE-backed and family or privately-owned assets in Europe side to side, three findings stand out:
Commenting on the findings of the report, Benoit Ficheur, Senior Partner at pan-European private equity firm Astorg said: "Across our portfolio, R&D and CAPEX is a strategic commitment to sustained growth and future-proofing the business. It's key to staying competitive in a constantly evolving world. Besides, we can indeed see that R&D increases as a percentage of revenues in all our portfolio companies following our investments." The report data is derived from the largest-of-its-kind study of European private companies. The period of observation is the 6 years from 2017-2022. Proprietary data-gathering methods make it possible to derive much more granular insights into the European pool of companies than previously possible, putting a new perspective on often-held common beliefs. Press Notes: Press Contacts: About Gain.pro We serve 100% of MBB/Big-4 advisories, clients representing >$500bn of private equity capital and more than 70% of the top-20 global M&A houses. Examples include Blackstone, Goldman Sachs and Bain & Company. We lead the market on customer satisfaction, as validated by external research (User Evidence survey 2023). Gain.pro has been named as one of Europe's top 50 fastest growing businesses, operating globally with offices in Amsterdam, London, Frankfurt, Warsaw and Bangalore. Logo: https://mma.prnewswire.com/media/2362891/Gain_Pro_Logo.jpg View original content:https://www.prnewswire.co.uk/news-releases/new-study-from-gainpro---private-equity-job-killer-or-growth-booster-302090517.html |