Voluntary surveys not enough

The Economic Impact of Private Equity in the UK, an annual survey commissioned by the BVCA has just been published. Last year at the Treasury Select Committee hearings, a number of trade union representatives grumbled about the lack of evidence that private equity was a force for good in the UK economy. The results of this research demonstrate what all of us involved in it feel to be the case - that it is a significant driver of growth. In a direct response to trade union criticism, printed at the top of the list of the findings is the fact that over the five years to 2006/07, the number of people employed worldwide by UK private equity-backed companies increased 20x more than their FTSE 100 counterparts (8% versus 0.4%). The other figures are equally favourable. Every year, private equity-backed companies record sales growth of 8% and increase exports by 8%, beating listed businesses in every category