Private Equity as a catalyst for growth in the EU
Private equity and firms managing PE investments have a key role to play in defusing the “retirement time bomb” and might be strong catalysts for meaningful growth within the European Union (EU).
Private equity (PE) as an asset class for pension funds has the potential to create a virtuous circle; it could boost local grass-roots economies, offer returns to consistently outperform those of more conventional investments, and, by providing the most efficient means for injecting capital into the real economy, create new jobs and local tax revenues.
However, to realize this potential, the sector and its actors face, at best, an unfavorable and, at worst, a hostile regulatory and political environment.
Mainly due to the ageing population and a significant increase in the number of pensioners, pension financing will become a major issue in Europe. For that reason, the pension reform system is part of the European Union’s (EU) 2020 strategy.
Performance magazine issue 18, September 2015
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.