Businesses backed by private equity have been creating jobs at a much faster rate than other private sector companies, according to a report published on Wednesday by the British Private Equity and Venture Capital Association (BVCA).

In the five years to April 2007, UK private equity-backed companies increased their worldwide staff by an average of 8 per cent a year, compared with 0.4 per cent for FTSE 100 companies and 3 per cent for the FTSE 250.