Creating New Jobs and Value With Private Equity

Forget what you might have heard about Private Equity (PE). Contrary to popular belief, there is no evidence that PE destroys companies and employment. In fact, the latest statistics reveal that PE accelerates the growth of jobs and generates value. Is it time for traditional firms to reconsider their strategies? Yes. Because every firm can enhance value creation and reach new levels of excellence.

PE has gotten a bad rap. The common misperception about PE is that investors overzealously focus on maximizing short-term returns and thereby eliminate jobs or break up organizations to sell off their various parts. On the contrary, instead of downsizing and exploiting organizations, PE investors often create a significant number of new jobs—one million over the past four years in Europe and 600,000 in the United States. And PE-financed firms, on average, generate employment at a much faster pace than comparable, traditionally financed firms.