Economic Footprint of Swedish Private Equity

Private equity (PE) funds are unique in the way they operate compared to other types of funds and public equity. Firstly, PE funds identify companies with a large untapped potential and provide them with long-term funding. Secondly, they provide companies they invest in with competent capital which helps these companies succeed. Through this active ownership PE funds increase the productivity of companies and create value for the entire economy.

This report documents the impact of Swedish private equity funds on the companies they invest in and the Swedish economy in total. We find that:

• More than 3000 Swedish companies have received PE capital over the past ten years, adding up to more than SEK 240 bn.
• On average, productivity of companies which receive private equity funds increases by more than 20% over the investment period. Company profits increase by more than 50%.
• The overall effect of PE and venture capital investments in Swedish firms has raised the GDP level by nearly 5% since 2007.

The Swedish private equity industry therefore contributes to a positive development of the Swedish economy. The specialised sector knowledge, specific risk profile, and long investment horizon mean that PE firms will also play an important role in realising the ambitious Swedish climate goals and contribute to a successful green transformation.

The study is commissioned by the Swedish Private Equity and Venture Capital Association (SVCA).