March 22, 2011
Commenting on the GMB's description of private equity as "truly the fifth horse of the apocalypse" in the light of business conditions at Punch and Southern Cross, Tim Hames, Head of Public Affairs at the British Private Equity & Venture Capital Association (BVCA), responded:
"Far from demonstrating that private equity is 'truly the fifth horse of the apocalypse', the GMB has, in fact, created its own pantomime horse. The union has invented a form of management organisation - "private equity inspired" - unknown in the real world. Punch has never been owned outright by private equity. The company sold its Spirit division to a set of private equity houses in 2002 and bought back the much enhanced section in 2005, six years ago. Southern Cross, also cited by the GMB, has not been owned by private equity since 2006, five years ago. In the intervening period there has been the largest economic shock since the 1930s, which has clearly affected both of these businesses like many others, and legislative changes, notably the smoking ban (which the GMB supported in 2007), that have had a particularly adverse impact on public houses. The GMB is running with a straw man, not a fifth horse."
FOR FURTHER INFORMATION PLEASE CONTACT
Tim Hames, BVCA: +44 (0)20 7420 1840
Tom Allchorne, BVCA: +44 (0)20 7420 1807
Note to editors:
The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has over 450 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.
