New disclosure guide launched

The Guidelines Monitoring Group (GMG) today launched a transparency and disclosure reporting guide for private equity general partners and their portfolio companies, produced with the assistance of the BVCA and PricewaterhouseCoopers.

'Improving transparency and disclosure: Good practice reporting by portfolio companies' provides analysis of the requirements laid down by the Walker Guidelines and a summary of good practice, supplemented with examples from portfolio company reports over the last two years.

Sir Michael Rake, chairman of the GMG, said: "I hope that this guide will prove to be a useful tool for the industry to improve further the quality and consistency of its financial reporting and its credibility with its stakeholders. The Group encourages all private equity houses and portfolio companies to build on the achievements of the last two years and continue to enhance their levels of transparency and disclosure by using this guide."

The event was well-attended, with over 60 private equity executives and portfolio company managers present, demonstrating the continuing commitment of the private equity industry to greater levels of transparency and disclosure.

The Walker Guidelines were published in November 2007 following an independent review, at the request of the BVCA, by Sir David Walker of the adequacy of disclosure and transparency in private equity.

The GMG was set-up in March 2008 to monitor conformity to the Guidelines, and published its second annual report in December 2009. Thirty-four private equity firms and 60 portfolio companies are currently covered by the Guidelines, up from 32 and 54 respectively in the first report, constituting well over 80% of funds under management. The level of disclosure is broadly equivalent to companies on FTSE 350.

Download:
Improving transparency and disclosure

FOR FURTHER INFORMATION PLEASE CONTACT

Tom Allchorne, BVCA:  +44 (0)20 7420 1807