The private equity industry should follow a code of conduct, UK business leaders believe.
According to a survey by Clearwater Corporate Finance, senior executives are overwhelmingly in favour of private equity but believe the industry needs to be more open about its activities.
Over 95% of business executives said they believed private equity was good for the UK economy, and 84% would have no problems using it to achieve their own growth plan or exit, despite recent negative media coverage.
However, 79% said private equity houses should be more transparent, and 85% said the industry should operate according to a code of conduct – albeit a voluntary one. Only 51% said it should be governed.
Simon Walker, chief executive officer, the British Venture Capital Association, said:
“Private equity plays an immense role in ensuring prosperity and efficiency but its contribution is inadequately recognised by the media.
“As this survey shows, business leaders greatly value the industry and firmly support its moves towards greater transparency and better governance.”
Phil Burns, partner at Clearwater, said:
“The survey shows there is massive support for private equity amongst UK business leaders. However there are clear warnings to the industry too.
“With the vast majority believing that the industry is too secretive, it is time for more openness.
“Private equity firms have kept their activities shrouded in secrecy for a long time but their impact on the economy is now so large they can no longer continue doing this.”
© Crimson Business Ltd. 2007
