PERG has published its 2015 annual report into disclosure and transparency practices for the largest private equity-backed portfolio companies in the UK. It provides a summary of the private equity industry’s conformity with the Guidelines for Disclosure and Transparency in Private Equity. Key points raised were:
- slight decline in levels of good or excellent/best in class compliance. PERG finds the fall unsurprising due to a combination of: the Guidelines including new requirements which can take time to implement; and improvements in the quality of reporting by listed companies in the FTSE 350, the benchmark for judging compliance;
- only 19 of the portfolio companies reviewed made the audited report and accounts or an alternative report available on the company’s website;
- portfolio companies improved the level of disclosure covering: key performance indicators; trends and factors affecting the future of the company; environmental matters; and social and community issues; and
- the quality of disclosure for the several criteria was weaker this year against a backdrop of increasing standards seen in the FTSE 350 and amendments to the Guidelines.
(Source: PERG Releases 2015 Annual Report)