Private equity (PE) and venture capital (VC)-backed companies are growing faster compared to their non-private equity-backed peers as well as market indices like the Sensex, Nifty and CNX midcap. The PE or VC-backed firms fare better in terms of growth in sales, profitability, wages, exports and R&D investments as compared to their peers which are not PE or VC-backed, according to a new study by Venture Intelligence, a leading research firm focussed on private equity and M&A activity in India.
Sales at publicly-listed PE-backed companies demonstrated a CAGR of 25% over the 10-year period 2000-2010, a significantly higher rate compared to 15.1% at non-PE-backed listed firms; 17.9% at Nifty Index companies; 19.2% at Sensex companies and 15.3% at CNX mid-cap companies. E-backed companies showed 31.5% growth in profit-after-tax, significantly higher than non-PE backed companies (22%), Nifty (23%), Sensex (21%) and CNX midcap (22%).
Source: Indian Express