BusinessCorporate FinancePrivate Equity heads fend off critics

Private Equity heads fend off critics

Heads of leading private equity groups stand up to questioning by Treasury select committee

The leaders of four of the UK’s most powerful private equity groups gave a
good performance before the Treasury select committee yesterday, as they argued
that the industry was a force for good and played by the same rules as any other
business.

Damon Buffini from Permira, Philip Yea from 3i, Robert Easton from Carlyle
and Dominic Murphy from KKR were summoned by the Treasury select committee to
answer criticisms from unions and politicians that the industry lacked
transparency, enjoyed unfair tax advantages and stripped companies of their
assets.

‘We do a good job for our investors and customers and we have excellent
relations with our employees and unions,’ Easton said.

Murphy said: ‘We are a force for good. Private equity has created more jobs
at a faster rate than institutional investors.’

Yea defended the industry against accusations that its executives made too
much money from carried interest payments, which attracted low tax, without
taking the enough risk.

‘Private equity is not a one-way bet,’ said Yea. ‘There are an awful number
of private groups out there that have not survived their first fund. Carried
interest focuses people. It is not some kind of golden shower at the end. If you
make a bad investment choice it costs you personally.’

Further reading:

Private equity bosses ‘will bow to tax rises’

Private equity crash could hit shares

Related Articles

Grant Thornton recruits new corporate finance partner

Accounting Firms Grant Thornton recruits new corporate finance partner

10m Emma Smith, Managing Editor
Total fraud value at £2bn five-year high, finds BDO

Accounting Firms Total fraud value at £2bn five-year high, finds BDO

11m Stephanie Wix, Writer
MHA MacIntyre Hudson appoints corporate finance director

Accounting Firms MHA MacIntyre Hudson appoints corporate finance director

11m Stephanie Wix, Writer
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
KPMG announces senior partner promotion in Newcastle

Accounting Firms KPMG announces senior partner promotion in Newcastle

11m Stephanie Wix, Writer
Independent city firm reports 70% growth

Accounting Firms Independent city firm reports 70% growth

11m Stephanie Wix, Writer
Tax avoidance crackdown sees 80% jump in additional HMRC revenue

Accounting Firms Tax avoidance crackdown sees 80% jump in additional HMRC revenue

11m Stephanie Wix, Writer
Making Tax Digital: the "unexpected item in the bagging area"

Accounting Standards Making Tax Digital: the "unexpected item in the bagging area"

11m Stephanie Wix, Writer