Almost 200,000 jobs supported by private capital in Wales and South West England

Wales and South West England are home to almost 200,000 jobs in businesses directly supported by private equity and venture capital, or 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.

These are just some of the findings of a new study from The Ernst & Young LLP (EY) QUEST (Quantitative Economics and Statistics) practice – commissioned by the British Private Equity and Venture Capital Association (BVCA) – which has found that the sector plays a vital role in the growth of the UK’s national and regional economies.

The study makes it clear that, despite the role of the industry coming under intense scrutiny in recent years following a series of high-profile transactions, it is a key player in supporting start-ups and growing businesses in emerging destinations for investment like Wales and the South West.

This is confirmed further by data from the BVCA, which found that its PE and VC members invested £920m into the South West (£795m) and Wales (£125m) in 2020 in to 56 and 58 companies respectively.

These are companies like:
Bristol’s Micrima, a healthtech start-up that began life in Bristol University, which has developed and commercialised a non-invasive breast imaging system using low frequency, non-ionising radio-wave (RADAR) technology

Cardiff’s Momentum Bioscience, which builds ultra-sensitive, two-hour tests to detect the presence/absence of bacteria and fungi in blood.

Wellington’s MK Systems, which provides automatic test systems used in the aerospace, defence, rail, eVehicle and power sectors.

BVCA Director General, Michael Moore, said:

“Private equity and venture capital matter to our economy. We support 6% of all UK jobs – and have the potential to grow many more across our nations and regions. Private capital plays an essential role in the growth of regional economies, and is a vital partner to firms in Wales and the South West.

“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.”