Private equity as growth accelerator (PDF)

Scientific Study from the year 2010 in the subject Business economics - Investment and Finance, , language: English, abstract: The demand in Germany for private equity has remained high for more than ten years, but particularly in times of crisis, private equity companies' activities are constantly under attack.

In numerous studies and publications - particularly in publications from private equity companies themselves - it is pointed out that investment companies have been supporting the technological and structural transformation of the German economy for decades by investing in fast-growing companies and industries.

It is often proclaimed that in this way a contribution was made to restructuring and modernising established industries and developing new economic sectors. By identifying sustainable companies and providing them with additional capital, they secure existing jobs and create new ones over the long term, the studies claim.

A central hypothesis can thus be formulated: PE-financed companies develop better than average, both as regards the number of employees and in terms of their financial indicators.

An empirical, quantitatively and qualitatively oriented study of the performance of private equity transactions in Germany show whether private equity transactions represent a promising possibility to further develop a company and act as a growth accelerator or not.