French PE-backed firms still outperform rest of economy – study

Comparative revenue growth of French PE-backed companies — 2009-2016 cumulative job creation rate also far exceeded that of the wider economy, Afic says

Greg Gille
@unquotenews
20 December 2017

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French private equity portfolio companies continued to outperform the wider economy in 2016, according to the latest research from local trade body Afic.

Afic routinely analyses the portfolios of its members to track revenue growth and job creation. This year's study (analysing results to the end of 2016) sampled 2,989 companies.

According to the study done in partnership with EY, these companies grew significantly faster than the nominal GDP growth rate of the OECD countries (40.4% versus 28.4%) and of France (40.4% versus 15.0%) over the seven years from 2009-2016.

Looking at 2016 growth only, the portfolio sample grew by 5.4% year-on-year, compared with 1.6% for the French economy as a whole and 3.3% for OECD countries.

The strongest revenue growth was seen in venture-backed businesses (+36% in 2016) while companies that underwent a buyout grew by an average of 5.2%.

In terms of job creation, the sample of PE portfolio companies created 45,724 jobs in 2016 (equating to a jobs growth rate of 3.7%). The wider French economy saw the number of jobs grow at 1.2%.

Click here to read the full study