Investor reporting
Invest Europe Investor Reporting Guidelines

In November 2015, Invest Europe launched the latest edition of its Professional Standards Handbook. The publication aims to be a ‘one-stop shop’ of professional standards applicable to our industry. With a view to bringing together the fundamentals of governance, transparency and accountability, it has been a collaboration between LP and GP members of Invest Europe, as well as their advisers. The Handbook includes the Invest Europe Investor Reporting Guidelines, which updated to take account of the changing landscape following the implementation of the AIFMD across the EU since 2013. The Guidelines are designed to provide best practice investor reporting across an annual cycle.

IPEV Valuation Guidelines

Fund managers may be required to undertake periodic valuations of their investments as part of an ongoing reporting process to their fund investors.

The International Private Equity and Venture Capital Valuation (IPEV) Guidelines puts forward recommendations, intended to correspond to current best practice, on the valuation of private equity and venture capital investments.

The IPEV Board published the updated version of the IPEV Valuation Guidelines in December 2015. The new guidelines, the first revision since 2012, come following three years of experience applying IFRS 13, and with continued experience applying ASC Topic 820. The 2015 edition aims to improve readability with edits that clarify commentary and formatting changes to signpost content. Secondly, a number of technical clarifications have also been incorporated.

Valuation Guidelines


The Walker Guidelines and the Private Equity Reporting Group
"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 and will provide for better understanding of how private equity operates and its contribution to UK economic performance in terms of employment, productivity, investment and growth."

Sir David Walker, Final Guidelines, 20 November 2007

The Private Equity Reporting Group was created in 2007 as an independent body to monitor the private equity industry’s compliance with Sir David Walker’s Guidelines for Disclosure and Transparency in Private Equity. This was in response to the increased scrutiny and negative publicity the private equity industry faced in 2007 from the media, trade unions and politicians, culminating in the Treasury Select Committee hearings.

Since then, the industry has embraced and adopted these Guidelines with over seventy portfolio companies currently providing additional disclosure voluntarily. Further detail and reports can be found on the Group’s website and below we set out the objectives and benefits of the Guidelines to the private equity industry.

Objectives of the Guidelines
  • To demonstrate the private equity industry’s commitment to transparency of its activities

  • To provide data to support the private equity industry’s contribution to the UK economy
Benefits of the Guidelines
  • The Guidelines provide a framework for the private equity industry to enhance stakeholders’ understanding of our activities and address concerns about a lack of transparency in the industry. These stakeholders include government, regulators, media, employees, customers and the public more widely.

  • The data published on the performance of portfolio companies supports the advocacy work the BVCA does on behalf of the private equity industry. It gives us the credibility and evidence we need when discussing the industry’s contribution to the broader economy in terms of employment, productivity, capital investment and growth. This in turn allows for more informed and proportionate decisions on policy and regulation by government and regulators. It also provides a returns attribution analysis which quantifies the impact of strategic and operational plans implemented under private equity ownership as well as the impact of leverage.

  • By publishing annual reports on portfolio company websites and including further disclosure on private equity firms’ websites, the industry is able to demonstrate its commitment to transparency is real and here to stay.

  • Enhanced reporting by portfolio companies and disclosures by private equity firms on their investment approach further demonstrates we are responsible owners and builders of businesses. The reputational impact benefits the portfolio company itself as well as its owner and the Guidelines support those portfolio companies with reporting ahead of a listing on a public market.

  • The Guidelines are monitored by an independent body which further validates the private equity industry’s transparency commitment.
Scope of the Guidelines

Portfolio company
For the purposes of the Guidelines, a portfolio company will be in scope of the Guidelines if it is a UK company that has been acquired by one or more private equity firms (as defined below) and meets both part a and b of the following tests:

Acquisition in a public to private transaction where the market capitalisation together with the premium for acquisition of control was in excess of £210 million
Acquisition in a secondary or other non-market transaction where enterprise value at the time of the transaction was in excess of £350 million


More than 50% of revenues were generated in the UK
UK employees totalled in excess of 1,000 full-time equivalents.

Private equity firm
Private equity firms for the purposes of the Guidelines include private equity and ‘private equity-like’ firms. Private equity firms include those that manage or advise funds that either own or control one or more portfolio companies for the purpose of the Guidelines (as defined above). Private equity firms include those that acquire portfolio companies: i) with funds provided by one or more investors; ii) an exit/disposal of the company is envisaged and iii) may play an active management role in the company. This would therefore include, but is not limited to, other types of investment funds including infrastructure funds, pension funds, sovereign wealth funds and credit/debt funds. It also applies to firms that may be headquartered outside of the UK. Banks and credit institutions, other than their asset management operations, are specifically excluded.

Further details can be found on the Private Equity Reporting Group website.

Further information


 +44 (0)20 7492 0400