Private equity firms will have to produce Business Review-style narrative
reports, and the companies they own publish accounts five months earlier than
other private businesses, under radical proposals to be included in the Walker
The review, led by former Morgan Stanley chairman Sir David Walker, was
commissioned by the British
Venture Capital Association in an effort to improve the transparency and
disclosure of private equity.
Appearing before the Treasury Select Committee, Sir David revealed that the
report calls for companies owned by private equity to file accounts on the
internet within four months of year end. Currently these companies, like other
non-listed businesses, are only required to file with Companies House nine
months after the books are closed.
The report will recommend that private equity groups prepare an annual review
with a narrative outlining policy towards employees and stakeholders.
Disclosures of what types of investors are contributing to buy-out funds will
also be required.
At the same hearing Apax Partners head Jon Moulton said simpler tax rules
would make the industry easier to understand.
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