We take the view that this consultation relates, or should relate, purely to the private equity industry and its participants and funds and we note that it appears to have the approval of many of the major players in that industry. We therefore have no objection to proposals which affect that industry and its participants (including large private equity portfolio companies), so long as they do not impinge on other large private companies. We have therefore confined our response to the question following paragraph 8.
Q. Does the prospective imbalance in reporting obligations as between private equity portfolio companies and other large private companies give rise to public policy or other concern? And, if so, how should this be addressed?
A. It may be that members of the BVCA may wish to commit to voluntary guidelines beyond their statutory requirements and Walker would appear to be fully supported by the major buy-out firms. However the ACT considers that this consultation is not the appropriate forum for addressing matters of public policy with respect to other organisations which may have differing ownership or managerial structures to private equity / LBOs.
Accordingly, the proposals which emanate from this consultation should be strictly limited to private equity participants, funds and portfolio companies and any suggestion that they might be suitable for wider application should be avoided.
