The Impact of Private Equity
The British Venture Capital Association (BVCA) launches a Report detailing the Impact of Private Equity on the UK Economy.
The BVCA report looks at the employment created from the private equity sector both directly & indirectly and also the revenue generated through the private equity industry’s activities, indicating why private equity is good for Britain.
Acknowledging that the financial industry is a key driver of UK economic growth and that London is a world-renowned centre for global finance & investment companies, the report looks mainly into the figures for the British economy, namely:
- The £5.4billion generated in fee income from the financial services industry (12% of the financial services sector’s total annual revenue)
- 18,000 people employed in private equity firms in the UK
- The attraction of regions outside London & the South East for private equity firms, especially the North West which has seen significant growth over the last few years.
Continued uncertainty over the tax system, i.e. Alistair Darling’s indecision on the possible changes to Capital Gains Tax and abolition of Taper Relief, have been cited by the BVCA’s chief executive, Simon Walker, as reasons to make Britain less attractive to investors. He urges that business should do everything it can to ensure that the UK does not lose it’s competitiveness.
The full research can be found in the BVCA’s report (1.57Mb PDF)