Australian PE supports half a million jobs - Deloitte

The findings, from a study titled The Economic Contribution of Private Equity in Australia, are based on information collected from 106 companies backed by private equity since 2000. The data was provided by the Australian Private Equity & Venture Capital Association (AVCAL).

According to the report, PE-backed companies employ an estimated 262,000 people while indirectly supporting 251,000 additional jobs through other businesses.

Australian PE firms were also said to contribute A$58.8 billion ($60 million) per annum to the country's GDP, generating more revenue than either the coal mining or general insurance industries in Australia.

"Private equity structures have proved to be especially valuable where firms face the need to expand or refocus their operations in what may be fluid economic and commercial conditions," said Dr. Ric Simes from Deloitte Access Economics.

AVCAL adds that currently Australian PE firms collectively manage over A$29 billion and back more than 500 companies employing over 100,000 people. Since records began, the industry has distributed around A$16 billion to LPs.

"Often commentators recycle anecdotal evidence about private equity, or focus only on high profile cases that don't represent what happens in the majority of private equity investments in Australian businesses," said Dr. Katherine Woodthorpe, chief executive of AVCAL. "Studies such as this are therefore important in helping to focus attention on the substance rather than the myths."

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• Topics
• Australasia
• Australia
• AVCAL