Providing a clearer path forward for private equity

The industry needs greater regulation and disclosure, but new rules should not scare it away from Britain

I was former chairman of Morgan Stanley International, I was the former regulator, the precursor of the FSA in the City, and a number of other roles. I was asked by the Venture Capital Association, which is the industry association for private equity in the UK, and by a group of major buyout firms to undertake an independent review into the degree of openness of private equity, which had come in for a lot of criticism. The scrutiny of private equity at the big buyout end had intensified greatly when they were pitching to buy Sainsbury’s, which in the event was a transaction that did not happen, and also to buy Alliance Boots. There was seen to be a lot of movement in their acquisition of listed companies that were being taken private and an acute sense that private equity is very secretive and the public just didn’t know enough about what was going on. That sense of uncertainty and ignorance led to a lot of suspicion. I have to say I think a lot of that was wholly justified, so there was disquiet that had to be addressed. Read More.