Over 1,400 completely new jobs – private equity and venture capital-backed companies go against the tide
Press releases
A new impact study by the Finnish Venture Capital Association (FVCA) and PwC shows that private equity and venture capital investments act as a strong engine for the renewal of Finland’s economy. Over the past year, private equity and venture capital-backed companies created more than 1,400 entirely new jobs, while the rest of the private sector lost 37,000 jobs. Between 2014 and 2024, 29 percent of the 146 companies that entered the list of Finland’s 500 largest companies had received private equity and venture capital investment – highlighting the significant role private equity and venture capital plays in driving growth, productivity, and employment in Finnish companies.
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. Buyout, growth, and venture capital investments have served as powerful engines for business expansion, job creation, and productivity improvement.
In 2024, private equity–backed companies created a total of 2 364 jobs, of which 1 400 were entirely new and 964 came through acquisitions. Altogether, these companies employ about 110 000 people in Finland – comparable in size to the ICT sector. This development is particularly noteworthy, as the rest of the private sector lost 37 000 jobs over the same period.
“Although the exact location of all new jobs is not known, it is reasonable to assume that the majority were created in Finland. This is a particularly significant finding at a time when many industries in Finland have been experiencing a decline in employment,” comments Jussi Lehtinen, Partner at PwC.
29% of new large companies are private equity–backed – turnover exceeds €27 billion
Between 2014 and 2024, 29 percent of the 146 companies that entered Finland’s list of the 500 largest companies had received private equity investment. These companies also grew faster than their peers on the list that had not received such investment.
The same trend is evident on a larger scale: the combined turnover of Finnish companies owned by domestic and international private equity investors exceeds €27 billion – equal to five percent of the total turnover of Finland’s business sector. Their average annual growth rate over three years has been as high as 67 percent, compared with just four percent among peers.
Productivity has also increased significantly – turnover per employee has grown by 17 percent annually, compared with just two percent among peer groups. In addition, the involvement of private equity investors has professionalized board work in portfolio companies and increased the role of international expertise, although Finland still lags behind the European average in board diversity and gender balance.
“The results of the study show that skilled ownership creates growth, jobs, and productivity – private equity investors are not chasing quick wins but bring competitive advantages and international expertise to companies,” says Anne Horttanainen, Managing Director of the Finnish Venture Capital Association.
