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AltAssets is the private equity news and research service from Almeida Capital
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PRINT THIS PAGE Sir David Walker' Guidelines for Disclosure and Transparency in Private Equity21/11/2007. Source: Jeffrey Pellin Consultancy. Sir David Walker 
Sir David Walker has published his Guidelines for Disclosure and Transparency in Private Equity, recommending that both private equity firms and their portfolio companies disclose more information. However, the private equity business will remain a private business and Sir David does not see the need to make it wholly transparent. The guidelines are a measure of self-regulation of the industry and apply to those buy-out firms that own or look to invest in larger UK companies.
Private equity firms are now required to publish an annual review or regularly update their websites to show information on their portfolios and investor base. They should use established guidelines for reporting to LPs and for the valuation of investments, and communicate promptly with their portfolio companies' employees, particularly in times of strategic change.
Portfolio companies will need to publish an annual report and accounts to include enhanced disclosure on their website within six months of year-end. They should also publish a mid-year update no later than three months after mid-year. Sir David wants to apply section 417 of the UK Companies Act 2006, including sub-section 5 that otherwise applies only to quoted companies, to the private equity industry's portfolio companies as well, calling for an indication of trends and factors likely to affect a company and to include information on the company's employees, environmental matters, and social and community issues.
Click here to view the full report (pdf 340kb)
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