Wales and South West England are home to almost 200,000 jobs in businesses directly supported by private equity and venture capital, representing around 10% of all jobs supported by the industry in the UK.
A further 370,000 jobs across these areas are indirectly supported by the private-capital industry through supply chains and related consumer spending.
A major study conducted by EY using its QUEST analytical model, commissioned by the BVCA (British Venture Capital Association, now UK Private Capital), has revealed the vital role played by the private equity and venture capital sector in supporting economic growth, job creation and business development across the region.
BVCA data shows that GBP 920 million was invested into South West England (GBP 795 million) and Wales (GBP 125 million) in 2020, across 56 and 58 companies respectively. These investments span a diverse range of sectors including technology, healthcare, manufacturing and business services.
Notable examples of private capital-backed businesses in the region include Bristol’s Micrima, a healthtech company developing advanced breast cancer screening technology; Cardiff’s Momentum Bioscience, a pharmaceutical firm focused on novel antimicrobial treatments; and Wellington’s MK Systems, a specialist engineering and defence technology business.
BVCA Director General Michael Moore commented on the findings: “Private equity and venture capital are supporting approximately 6% of all jobs in the UK. In Wales and South West England, the impact is particularly significant, with almost 200,000 people employed directly in businesses backed by the industry. This demonstrates the essential role that private capital plays in driving regional economic growth and supporting businesses of all sizes.”
“When a business backed by private capital succeeds, so do its investors and the community in which it is based. Growing businesses mean more jobs, more successful firms and more prosperous towns, regions and nations.”
About the BVCA
The BVCA (British Venture Capital Association), now operating as UK Private Capital, is the industry body and public policy advocate for the private equity and venture capital industry in the UK. With a diverse membership of over 750 firms, the BVCA represents the full spectrum of the private capital ecosystem. Its members collectively manage assets of over GBP 300 billion and provide capital to businesses at every stage of their development, from early-stage ventures to large buyouts and infrastructure investments.