The Government’s objectives in the field of private equity are the same as their objectives in relation to other forms of ownership: to promote an environment of long-term, sustainable business success, underpinned by a strong culture of clear disclosure to, and engagement with, underlying investors and stakeholders. The Government’s assessment also suggests that it is in the interests of the private equity industry to provide information which will improve public understanding of the industry by demonstrating the extent of its contribution to the UK economy and employment.
The Government also welcomed the announcement earlier this year by leading private equity houses and the British Venture Capital Association that it would undertake a review to draw up a comply-or-explain code to improve levels of disclosure. Sir David Walker’s code is an important step forward in improving the transparency of the industry. He has set a challenge for the private equity industry and the Government will watch with interest to see how the industry responds to this.