Treasury Committee Announces Evidence Sessions In Private Equity Probe

by Robin Pilgrim, LawAndTax-News.com, London

28 May 2007

The UK's Parliamentary Treasury Committee last week unveiled the timetable for its evidence sessions on private equity.

Earlier this year, the Committee announced that it had launched an inquiry into growing private equity activity in the UK, under the theme of ‘Transparency in Financial Markets and the Structure of UK Plc', and invited written evidence by May 9.

It sought comment from interested parties in three key areas:

The regulatory environment

• Is the current regulatory regime for private equity funds suitable?
• Is there sufficient transparency on the activities, objectives and structure of private equity funds for all relevant interested parties?
• Has there been evidence of excessive leverage in recent transactions and what systemic risks arise in consequence?
• What are the effects of the current corporate status of private equity funds, including both their domicile and ownership structure?

Taxation

• Is the current taxation regime for private equity funds and investee firms appropriate?

The economic context

• Are developments in the environment and structure of private equity affecting investments in the long-term?
• To what factors, including the current macroeconomic context and position in the economic cycle, is the current rise of private equity attributable?
• What are the economic advantages and disadvantages of a firm being owned by private equity funds as opposed to being publicly listed?

Following the passing of the deadline for written submissions, the Treasury Committee announced on Friday that it will be holding evidence sessions with the following participants as part of the ongoing inquiry:

Tuesday 12 June

• at 9.45 am: Professor Eli Talmor, London Business School, Professor Tim Jenkinson, Saïd Business School, University of Oxford, and Professor Karel Williams, CRESC, University of Manchester;
• at 10.30 am: Brendan Barber, General Secretary, TUC, and Will Hutton, Chief Executive, The Work Foundation; and
• at 11.15 am: British Private Equity and Venture Capital Association (BVCA).

Wednesday 20 June

• at 2.30 pm: Unite and GMB;
• at 3.15 pm: Permira, Kohlberg Kravis Roberts & Co (KKR), 3i, Carlyle Group, and Blackstone; and
• at 4.15 pm: London Stock Exchange, Association of Investment Companies (AIC), Association of British Insurers (ABI), and the CBI.

Tuesday 3 July

• at 9.45 am: Sir David Walker; and
• at 10.30 am: Financial Services Authority (FSA).

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