Swedish PE-backed companies higher growth than peers

For the private equity-owned businesses that were not divested in the period 2006-2008, revenue grew as much as 46%, and EBIT dropped less than other comparable companies. The number of employees also increased by 15% the study found. Notably, growth in all sectors except Industrials was higher than Small Cap-listed businesses.

As private equity constitutes a relatively large proportion of the Swedish economy, the numbers are welcome reading. Despite cases where portfolio businesses have struggled due to heavy debt burdens and strict covenants, the industry overall represent a key source of financing and resources for Swedish companies. In fact, the PE-backed companies counts for 8% of the country's GDP, and in terms of capital invested, Sweden ranks second after the UK relative to its GDP with 0.67%.

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