Two million jobs are supported by private capital in the UK, around 6% of all UK jobs, according to a new independent study.
Additionally, almost two million jobs are also indirectly supported in the supply chain and through consumer spending – making the value of private capital to the UK economy even clearer.
The role of private equity and venture capital has come under intense scrutiny in recent years following a series of high-profile transactions, but the findings of a study from EY – commissioned by the British Private Equity and Venture Capital Association (BVCA) – has found that the sector plays a vital role in the growth of the UK economy.
The report also found that private capital backed businesses were worth just over £100 billion to the UK economy, around 5% of UK GDP.
The study goes on to illustrate that jobs backed by private capital are spread across the UK, with more than half based outside of London and England’s South East. The North West of England is home to the largest amount of private capital backed jobs (171,000) outside the capital and the South East.
The study was launched at British Engineering Services’ Paul Forrester Training Centre in Warrington. British Engineering Services, which tests, inspects and certifies businesses for their safety, had the potential to grow but needed additional funding. Following the long-term investment by Inflexion, a mid-market private equity firm and BVCA member, it has been able to grow its workforce by more than 380 people, invest in its IT and sales systems and more than double its turnover.
