Understanding Private Equity's Impact On The Economy

Guernsey's stability and depth of expertise continues to see the Island placed at the forefront of the private equity funds industry. There are however few industries that evoke the sort of strong feelings that characterise perceptions about private equity.

Fortunately, there exists a significant body of academic research that can help unwrap the mystery and provide an objective voice in the debate.

As with anything, there exist both pros and cons, but it is clear that there are net economic gains that are associated with PE's model of corporate ownership. Indeed, taken in aggregate, the evidence is compelling that:

PE has measurable benefits on the productivity of the companies in which it invests