Sir David Walker will today reveal details of a review on transparency and corporate governance among the UK’s larger private equity-backed companies.

The review, the PE industry’s first response to scathing criticism from politicians and union leaders, is expected to float the idea of buyout firms appointing external, non-executive directors to the boards of some companies bought by private equity, reports the Financial Times.

Sir David is expected to propose a code of conduct that would only apply to buy-out firms that have acquired companies above a certain size, equivalent to the FTSE 250 index, to be measured by the value of the acquired company and the size of its workforce.

Proposals will include a recommendation for more disclosure about the performance of buy-out funds. Sir David will urge regular communication with staff at portfolio companies, and much greater disclosure on the debt structures of portfolio companies, including repayment schedules and covenants for loans.