Private equity and venture capital-backed companies created a million jobs in Europe between 2000 and 2004, according to research commissioned by the European Private Equity and Venture Capital Association.
Buy-out and venture-backed companies now employ over six million people throughout Europe, or 3% of the total active workforce.
The largest contribution to employment growth came at companies backed by venture capital, with over 620,000 new employees. Buy-out backed firms created 420,000 new jobs.
Companies backed by venture capital or buy-outs grew at an average annual rate of 2.4% between 1997 to 2004, nearly four times the growth rate of European Union member states.
The highest growth rate was created by buy-outs of family owned businesses, which saw an annual employment increase of 7%.
Two-thirds of buy-out financed companies maintained or increased their headcount after completion of the buy-out, with one third increasing headcount by 5% or more between 1997 and 2004.