Economic contribution of UK private equity and venture capital in 2023

This report, produced by The Ernst & Young LLP QUEST (Quantitative Economics and Statistics) practice and commissioned by the BVCA, estimates the current economic activity of, and related to, UK companies supported by private equity and venture capital firms within the UK economy in 2023.

This analysis does not include the related activity of private equity firms and venture capital firms themselves. The estimates provide a snapshot of the economic footprint of economic activity supported by private equity and venture capital investments as measured by employment, employee earnings, and gross domestic product (GDP) in 2023. By providing information on the overall scope of economic activity supported by private equity and venture capital investments, measured and defined in several different ways, this report helps shed light on the reach of private equity and venture capital within the UK economy.

Companies supported by private equity and venture capital provide employment and earnings for many workers. Overall, in 2023, private equity and venture capital backed businesses employ 2.2 million workers, collectively earning £75 billion. This reflects the economic activity supported by the investments of private equity and venture capital firms. Throughout this report, any reference to economic activity supported by private equity and venture capital firms relates to the United Kingdom alone.

Suppliers to private equity and venture capital backed businesses employ an additional 1.3 million workers earning £49 billion and generating £88 billion of GDP in 2023. The consumer spending of workers of private equity and venture capital backed businesses and their suppliers support an additional 857,000 workers earning £25 billion and generating £61 billion of GDP in 2023.