Does Private Equity Investment Positively Impact on Firm Profitability and on the Growth of the Target Company?

Private Equity (PE), with around 45.5 billion invested in target companies in Europe in 2011, is a core tool that allows the funding of businesses with high potential. The amount of the funds invested in the PE industry grew during that year, as investments slightly increased, that is by 6 per cent, over 2010 (EVCA Yearbook 2012).