News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Companies benefit from private equity productivity boost

Productivity gains from private equity involvement in companies since 1980 have boosted the US economy by $4bn to $15bn (€3.1bn to €11.7bn) per year and are expected to be even greater in the current recession, according to one of the most exhaustive studies carried out by the non-profit World Economic Forum.

The Forum's study, Globalization of Alternative Investments Working Papers Volume 2: The Global Economic Impact of Private Equity Report 2009, examined more than 4,000 companies backed by private equity and other owners with different corporate governance standards and found management practices were far better than in buyouts compared to government, family or privately owned businesses and just better than listed peers owned by a diverse set of owners.

WSJ Logo