The narrative that investors destroy jobs is a dangerous oversimplification. When investment is done well, employment grows, becomes more professional, and more stable.
There is a widespread narrative that links investor entry into a company with job destruction. The headlines feed that perception. The reality is more nuanced, and in the Spanish middle market, the relationship between investment and employment is, when done well, clearly positive.
According to a 2022 study by ASCRI and IESE, companies backed by private capital in Spain created jobs at a rate of 5.2% per year between 2017 and 2021, versus 1.8% for the economy as a whole. In other words, private-backed companies created employment almost three times faster than the average. At the European level, Invest Europe data shows a similar pattern.
In our portfolio of over eighty companies, net employment has grown in 90% of cases during our ownership period. The exceptions correspond to special situations where restructuring required an initial headcount adjustment — but even in those cases, employment at three years post-acquisition exceeded the level at the time of purchase.
How is this employment growth explained? Through several channels: organic growth (professionalised sales leads to more revenue, which requires more people), acquisitions (buy-and-build strategies incorporate employees), and professionalisation (creating qualified roles — CFO, operations director, IT manager — that did not previously exist).
As important as the quantity of employment is its quality. Professional investor entry typically translates into formalisation of contracts, increased training budgets, the creation of career paths, and more competitive compensation structures.
It would be dishonest to omit that in some cases, investor entry does involve headcount adjustments — primarily in distressed companies and in acquisitions with administrative duplications. In both cases, the key is how the process is managed: with transparency, respect for labour rights, and dignified exit packages.
At Blue Mountain, employment is not a by-product of investment. It is a central indicator of our success. We seek growth that is inclusive — generating value for shareholders, employees, clients, and communities. This is not idealism. It is pragmatism. Companies that take care of their employees retain talent, innovate more, deliver better service, and generate more profit over the long term.
Investment and employment are not a zero-sum game. They are a positive-sum game when managed with intelligence and principles.
Dirk Manuel Martens Jimenez Founder, Blue Mountain Capital
Founder of Blue Mountain
Over 15 years investing in Spanish companies with patient capital. Expert in business succession, corporate governance, and middle-market investment.
By Blue Mountain Capital
By Dirk Manuel Martens Jiménez
By Dirk Manuel Martens Jiménez
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