Private Equity Employs 1 in 8 UK Workers, Deepening Reach Across Essential Services
Updated
Updated · The Guardian · Jun 28
Private Equity Employs 1 in 8 UK Workers, Deepening Reach Across Essential Services
3 articles · Updated · The Guardian · Jun 28
Summary
A Guardian investigation found up to one in eight UK workers are employed by companies ultimately controlled by private equity, underscoring how far the model has spread through everyday British life.
More than a third of nursery workers, 35% of veterinary employees, about a third of booksellers and film-postproduction staff, and 27% of petrol stations were tied to private equity ownership or control.
Critics including economist John Kay and Oxford professor Ludovic Phalippou said the model can prioritize short-term extraction and leaves essential-service operators facing too few safeguards on debt, ownership and failure planning.
Industry body UK Private Capital defended the sector, saying firms invested nearly £150 billion in the UK over five years and help raise productivity, innovation and regional growth.
The findings add to scrutiny from regulators and ministers, including CMA reviews of childcare, vets and forecourts, after past failures such as Four Seasons Health Care's 2019 collapse under £1.5 billion of debt.
When private equity runs your local nursery and care home, who ultimately pays the price for their pursuit of profit?
Can we rewrite business rules to force private equity to serve society, not just seek maximum profit?
Is the private equity boom creating a hidden debt bomb, setting the stage for the next global financial crisis?
Private Equity’s Expanding £1.7 Trillion Role in the UK: Impacts on Essential Services, Workers, and Communities (2025)
Overview
Private equity and venture capital have rapidly expanded in the UK, making it the largest private capital market in Europe and second only to the US globally. By 2022, assets under management reached £1.7 trillion, up 10% from the previous year and 60% over five years. This growth has deepened the sector’s impact on the UK economy, supporting millions of jobs and contributing significantly to GDP. Despite recent fluctuations in fundraising and investment, the long-term trend shows strong expansion, positioning the UK as a global leader in private capital and highlighting its growing influence on essential services and employment.