London, Tuesday, November 20, 2007 -- ARANCA NEWSTRACK – (www.aranca.com)
India, Republic of (Press Release) November 22, 2007 --
The proposals of Sir David Walker concerning the private equity industry will mean companies in the sector will face a "significant" rise in costs, it has been claimed.
Simon Walker, chief executive of the British Venture Capital and Private Equity Association (BVCA), believes the new code of conduct devised by Sir David will prove troublesome, particularly as it recommends that the BVCA should be "beefed up" to become "the recognised authoritative source of intelligence and analysis" for the industry.
"It's going to be quite a burden on private equity and I don't think anyone should understate that or say it's going to be easy, but we are going to give it a go," he confirmed in the Telegraph.
Under Sir David's code of conduct, certain portfolio companies will have to disclose which private equity companies own them and release details of the board, the company's debt and cash flow in its six-monthly reports.
However, only those portfolio companies which are bought out with a value of over £300 million, which generate more than 50 per cent of their revenues in the UK and have more than 1,000 UK employees are affected by the proposals.
"My hope and expectation is that implementation of these guidelines and recommendations will mitigate many of the specific concerns about large-scale buyout activity that have emerged in the recent past," Sir David said in the report.
It "will provide for better understanding of how private equity operates and its contribution to UK economic performance", he added.
Copyright and Disclaimer:
Copyright 2007, Aranca. All Rights Reserved.
All the contents of this Site are only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision.
Editors/Journalists/Blogs are invited to request republishing/dissemination rights. All requests to republish Aranca material for distribution should be addressed to:
Aranca Syndication Service at syndicate@aranca.com.
Tel: +91.22.4005 2219 / +91.22.6725 8115
Simon Walker, chief executive of the British Venture Capital and Private Equity Association (BVCA), believes the new code of conduct devised by Sir David will prove troublesome, particularly as it recommends that the BVCA should be "beefed up" to become "the recognised authoritative source of intelligence and analysis" for the industry.
"It's going to be quite a burden on private equity and I don't think anyone should understate that or say it's going to be easy, but we are going to give it a go," he confirmed in the Telegraph.
Under Sir David's code of conduct, certain portfolio companies will have to disclose which private equity companies own them and release details of the board, the company's debt and cash flow in its six-monthly reports.
However, only those portfolio companies which are bought out with a value of over £300 million, which generate more than 50 per cent of their revenues in the UK and have more than 1,000 UK employees are affected by the proposals.
"My hope and expectation is that implementation of these guidelines and recommendations will mitigate many of the specific concerns about large-scale buyout activity that have emerged in the recent past," Sir David said in the report.
It "will provide for better understanding of how private equity operates and its contribution to UK economic performance", he added.
Copyright and Disclaimer:
Copyright 2007, Aranca. All Rights Reserved.
All the contents of this Site are only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision.
Editors/Journalists/Blogs are invited to request republishing/dissemination rights. All requests to republish Aranca material for distribution should be addressed to:
Aranca Syndication Service at syndicate@aranca.com.
Tel: +91.22.4005 2219 / +91.22.6725 8115
Email
Print
SPAM
LEAVE A COMMENT
