The European Private Equity and Venture Capital Association has highlighted the positive role the industry plays in providing financial support to small- and medium-sized companies, as popular disquiet over the actions of firms involved in large-scale buyouts intensifies.

Almost nine in 10 of all private equity investments last year were in companies employing fewer than 500 people and seed and start-up investment almost doubled to and €5.6bn, according to the annual report of the EVCA, the industry's representative body in Europe.