Nicholas Neveling

Private equity firms will have to produce Business Review-style narrative reports, and the companies they own publish accounts five months earlier than other private businesses, under radical proposals to be included in the Walker Review.

The review, led by former Morgan Stanley chairman Sir David Walker, was commissioned by the British Venture Capital Association in an effort to improve the transparency and disclosure of private equity.

Appearing before the Treasury Select Committee, Sir David revealed that the report calls for companies owned by private equity to file accounts on the internet within four months of year end. Currently these companies, like other non-listed businesses, are only required to file with Companies House nine months after the books are closed.

The report will recommend that private equity groups prepare an annual review with a narrative outlining policy towards employees and stakeholders. Disclosures of what types of investors are contributing to buy-out funds will also be required.

At the same hearing Apax Partners head Jon Moulton said simpler tax rules would make the industry easier to understand.

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