Private equity performance – A study of Private Equity owned portfolio companies in Sweden

The private equity market has grown substantially both in Sweden and internationally during the past few years. The growth of the number of private equity firms as well as the increasing number of companies backed by private equity has led to an increased interest in the private equity industry by the general public, media, politicians, labour unions and other stakeholders. The intention of this study is to provide relevant information regarding private equity backed companies and its development to all interested parties/stakeholders.

This is the sixth portfolio company study conducted by the SVCA. For the first time, the SVCA has collaborated with Ernst & Young in the making of this report.

The study has three main purposes; firstly, examine the growth in terms of employment, revenue and profitability of private equity backed companies; secondly, providing a snapshot of the private equity backed companies in terms of total number of employees, total aggregated turnover and the number of private equity backed companies both domestically and internationally. The third purpose is to illustrate what the private equity firms contribute to their portfolio companies.

In this report, we will highlight a few conclusions from this qualitative study. The full qualitative report discussing what private equity firms contribute to their portfolio companies will be launched shortly.

All relevant information about the portfolio companies has been collected directly from private equity firms active on the Swedish market. In addition, data from SVCA’s databases and public information has been incorporated in the dataset. Data from annual accounts for both private equity backed firms and relevant peer groups has been
supplied by Retriever.

Marie Reinius, Managing Director, SVCA
David Ramm, Partner, Ernst & Young

Download the full report

About SVCA

The Swedish Private Equity & Venture Capital Association (SVCA) is an independent, non-profit association supporting the interests of companies and individuals active in the Swedish private equity industry. The SVCA’s objective is to promote an efficient private equity market, to inform and educate about the industry and to promote
entrepreneurship.

About Ernst & Young Private Equity

Value creation goes beyond the investment cycle to portfolio company management and fund support. Deal success doesn’t end when the deal closes. Savvy acquirers know success and stakeholder value lie in portfolio companies’ continued growth under their watch and after their exits. Portfolio companies continually face operational, growth,
regulatory, industry and market challenges and each challenge needs to be assessed to achieve sustainable growth. Therefore, private equity firms cannot be adequately served by supporting their M&A activity alone.

Ernst & Young’s Private Equity practice offers a holistic, tailored approach that encompasses the needs of funds, their M&A process and portfolio companies while addressing market, industry and regulatory concerns and opportunities. With a global network of over 8,000 dedicated M&A professionals and more than 20 years of private
equity experience, we can meet private equity firms’ and their portfolio companies’ evolving needs.