Proximity and power within investment relationships: The case of the UK private equity industry

The role of power in economic activity has been researched across the social sciences but there has been little engagement with the spatialities of power relations. This paper thus draws on a recent reinvigorated interest in power within economic geography to develop an approach for understanding how the spatiality of power relations in economic practices are constituted through different forms of proximity. It argues that proximity needs to be conceptualised as multi-dimensional including physical, cultural, virtual and organizational proximity between firms and actors. It further contends that the development of different forms of proximity shape the agency of empowered actors in industry clusters and regional economies. This general proposition is explored by presenting research into a case study: the UK-based private equity industry. The research focuses on the nature, role and development of different forms of proximity between private equity firms and the investee firms that are the subject of investments.