Over 2000 new jobs created, rapid growth, and a strong tax footprint – Private equity-backed companies drive economic impact in Finland

Press releases

Finnish companies owned by venture capital and private equity investors are growing significantly faster than their peers in revenue, employment, and productivity. In 2023, these companies created over 2000 new jobs despite a decline in overall employment in Finland. Collectively, they contribute 4% to Finland’s total tax revenue.

A recent study by the Finnish Venture Capital Association (FVCA) and PwC examined the impact of private equity and venture capital (hereafter referred to as private equity) on the growth of Finnish companies and the Finnish economy.

The study shows that Finnish companies owned by private equity investors grow significantly faster than their peers in terms of both revenue and personnel count, when observing annual growth over three years from initial investment. Revenue growth is thirteen times faster, and employment growth is eight times faster than their peers.

Productivity, measured by revenue per employee, also grew considerably faster in these companies, with annual productivity growth seven times faster than in peer firms.

“Productivity growth in Finland has long lagged behind other nations, and it’s essential to find solutions to this. The study results demonstrate the significant role that skilled, active ownership plays in driving productivity growth,” comments Anne Horttanainen, Managing Director of the Finnish Venture Capital Association.

Over 2000 new jobs created in 2023 and a significant tax contribution

While acquisitions drive part of the employment growth in private equity-backed companies, organic growth contributes significantly, with approximately one-third of new jobs created organically. In 2023, companies owned by private equity investors created over 2000 new jobs.

Last year, private sector employment in Finland declined by approximately 13,000 jobs. Against this backdrop, the employment boost from growth-driven, private equity-backed companies stands out even more, comments Jussi Lehtinen, Partner at PwC.

For the first time, the study also quantified the tax footprint of private equity-backed companies in Finland. In 2022, these companies paid €3.8 billion in taxes, amounting to 4% of Finland’s total tax revenue.

This contribution could fund the government’s budget for higher education and research, which was approximately €3.7 billion for 2024.

“Finland is currently pursuing growth initiatives on multiple fronts, including Prime Minister Petteri Orpo’s ‘Kasvuriihi’ project, which seeks to explore new ways to accelerate growth. Private equity investors and their portfolio companies have a proven record of fostering growth in Finland. It’s crucial to maintain a supportive environment and a strong financing ecosystem for these growth-oriented companies, Horttanainen comments.

Read the full study here.

Additional information:

Anne Horttanainen
Finnish Venture Capital Association, Managing Director
anne.horttanainen@fvca.fi
+358 40 510 4907

Jussi Lehtinen
PwC/Strategy&, Partner
jussi.lehtinen@pwc.com
+358 20 787 8756

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