Key Statistics: Venture Capital & Private Equity - UK Economy 2021
Get all the important Key statistics on Venture Capital & Private Equity in the UK economy 2021.
We have summarised reports and other resources to give you a quick and convenient overview. As a reminder, do your research!
What has Fashion to do with VC or Private Equity?
There are many reasons why we look into this field as an online retailer. Both venture capital and private equity have a solid influence on the UK´s GDP, and furthermore, employment.
It creates opportunities for start-ups, established organisations and the overall country´s economic productivity.
An UK-based organisation that focuses on the landscape of VC and PE is for example BVCA (British Private Equity & Venture Capital Association).
A report published in April 2022 delivers important statistics and insights for businesses that consider different options of (financial) support for their business and its future.
What influence has Private equity and Venture capital on the UK economy?
- PE & VE contributed to the employment of 1.9 people in 2021
- In fact, it supports around 5% of UK employment in the year 2021
- An average worker at such associated enterprises has earned around 30,000 GBP per annual, covering a solid living standard even for workers located in London, the capital of the England
- Consumer spending has related in 43 billion GBP from such PE and VC backed businesses (2021)
- The economic activity resulting from both backed businesses and suppliers equivalated 208 billion GBP in 2021
What does economic distribution of PE and VC capital backed organisations look like from geographical perspective (UK)?
- Scotland - 133.000 jobs, 7% of total UK jobs
- Northern Ireland - 38.000 jobs, 2% of total UK jobs
- North east - 50.000 jobs, 3% of total UK jobs
- North west - 171.000 jobs, 9% of total UK jobs
- West Midlands - 127.000 jobs, 7% of total UK jobs
- Wales - 60.000 jobs, 3% of total UK jobs
- Yorkshire and the Humber - 117.000 jobs, 6% of total UK jobs
- East Midlands - 103.000 jobs, 5% of total UK jobs
- East of England - 147.000 jobs, 8% of total UK jobs
- London - 599.000 jobs, 31% of total UK jobs
- South East - 256.000 jobs, 13% of total UK jobs
- South West - 118.000 jobs, 6% of total UK jobs
As visible in the listing above, London accounts geographically for the highest contribution of jobs generated by Private equity or venture capital backed enterprises.
What is Private Equity?
A private equity business collaborates with investors aiming for the creation of a fund that flows into selected companies.
In favor of the investment, typically a share of the business will be traded to the investor side.
The financial aid usually comes with advice on strategy or expert knowledge the targets leverages of the investment.
A private equity firm has commonly multiple funds to manage that can vary in their focus and concentration regarding sizes of a company, location or industry.
Two Private Equity funds appear to be most common
- Established/ mature businesses
- Growth equity
Top biggest Asset Management Firms
Provided by (thebalance.com, 2022)
- Blackrock
- The vanguard group
- UBS
- Fidelity
- State street global advisors
- Morgan stanley
- Morgan Chase
- Allianz
- Capital group
- Goldman Sachs
The Top 2 Asset Management Firms - A Close Up
- Investment management company
- Offices in US, Asia Pacific, Europe, Middle East & Africa
- Financial reports (15th July 2022) concluded
- $90.000.000.000 of quartely total net inflow
- YoY - Revenue decreased 6 percent
- YoY - increase of 5 percent of services around technologies
- shares worth $500.000.000 have been repurchased
- since 1999, leader in providing financial technology
- Climate change: Identify companies that heavily rely on carbon aiming for net-zero success and lead by example in their industry
- Investment management company, Headquarters: Valley Forge, Pennsylvania, US
- founded in 1975
- Funds/Assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation
- “Global economic growth will likely stay positive this year, but some economies are flirting with recession, if not this year, then in 2023,” (A. Patterson, Vanguard senior international economist, 2022)
- Expect that UK bank rates will be raised to ca. 2.5% over the course of the coming year, value of wages has decreased, strong labor market but policy uncertainty
