Industry-Level Effects of Private Equity Investment in Europe

Aleksandra Jandric () and Adam Gersl
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Aleksandra Jandric: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague

No 2026/22, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: This paper examines the relationship between private equity investment and industry-level performance in Europe over 2008-2023. We combine Invest Europe and Eurostat data to construct harmonized country-sector-year panels covering 16 countries overall and 10 sectors, with outcome-specific estimation samples. PE intensity is measured relative to sectoral production value and enters the models with a one-year lag. Baseline fixed-effects models are complemented by additional fixed-effects structures, timing tests and robustness checks. Results indicate that higher lagged PE intensity is consistently associated with stronger subsequent nominal growth in output and value added. Personnel-cost growth is also generally positively associated with PE intensity. By contrast, the employment association is weaker: it loses statistical significance under several robustness checks and does not display the temporal ordering observed for the monetary outcomes. The paper updates the limited European industry-level evidence using a novel harmonized dataset and a period covering substantially different economic conditions, offering new insight into the extent to which PE investment intensity is associated with broader sector-level outcomes.

Keywords: Private equity; Investment; Industry growth; Production; Employment; Panel data; Europe (search for similar items in EconPapers)
JEL-codes: C23 E44 G24 G32 L25 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2026-08, Revised 2026-08
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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2026_22

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