Ernst & Young's eighth annual study of private equity value creation in Europe is framed slightly differently than reports in previous years. This year’s report debunks certain myths put forward by the industry’s detractors — namely that PE cuts jobs, strips assets and relies on leverage for returns. To the contrary, PE grows employment, creates more valuable businesses and generates returns through strategic and operational transformation. The report also highlights challenges for PE and offers an outlook for the rest of 2013.