Territorial Impact of Private Equity (France Invest)

Summary

• IN France identified 7 262 active legal entities in France in 2021 that received investment from France Invest members, corresponding to 24 911 active establishments.p.3
• The total turnover of the analyzed sample of private equity-backed companies reached €121 billion, including €82 billion generated outside Île-de-France.p.4
• Outside Île-de-France, the Rhône department concentrated the highest turnover with €6.3 billion.p.4
• The analyzed portfolio entities directly employed 612 018 people at end-2021.p.7
• Total employment generated through direct, indirect (485 721 jobs), and induced (180 551 jobs) effects reached 1 278 291 jobs.p.7
• Direct tax contributions from analyzed establishments amounted to €2 758 million in 2021.p.8
• Total tax contributions reached €10 295 million including €2 006 million in indirect taxes and €5 531 million in induced taxes.p.8

Key insights

1. Each job in a company backed by a French private equity firm indirectly and inductively generates 1.1 additional jobs.p.2
2. Every €1 of turnover produced by a portfolio company generates 8.4 cts€ in national tax revenue in France.p.2
3. Financial data was retrieved from 4 832 income statements for 2021 out of 7 262 identified legal entities.p.3
4. Grand Paris represents the intercommunal area with the largest turnover from private equity-backed companies at €32.4 billion.p.5
5. Headquarters of backed companies are strongly concentrated around major metropolitan areas while secondary establishments cover the entire country.p.6
6. In the Auvergne-Rhône-Alpes region, supported companies generated €15 414 million in turnover with an export share of 24%.p.11