News

Private Equity- What has been happening? JUNE/JULY



Engagement with private equity councils across the globe

Unions around the world have been engaging with private equity councils to generate a dialogue about labour relations. Danish trade unions have begun discussions with the Danish Venture Capital Association who, this month released new guidelines for ownership and good corporate governance, the TUC UK, have been meeting with the British Venture Capital Association (BVCA) and the Global Union Council is currently exchanging views on Labour Principles with the US PEC.



Public uproar in France over private equity payouts sparks discussion on code of conduct

Private equity has again been attacked in the media, this time in France over huge payouts being offered to executives as part of leveraged buyout deals. The head of AXA private equity group claims there will be fall out for the entire industry following this occurrence and that it is time to draw up a code of conduct. Read more at:

http://www.ft.com/cms/s/0/64f9dae2-5113-11dd-b751-000077b07658,_i_email=y.html



Easy money and cheap debt opportunities disappear in Europe for private equity

The opportunity for private equity firms to add new debt to portfolio companies, which they already own, in order to finance a ‘special dividend’ has closed. These deals are known as dividend recaps. Not one deal of this kind has been backed by a bank this year in Europe. Read more at: www.ft.com/creditsqueeze





German initiative to curtail excessive executive pay

Proposals are being sought in Germany to look into tightening up corporate governance and taxation rules in an aim to cut down ‘excessive’ pay arrangements. Angela Merkel’s government has put together a working group to investigate possibilites. Stock options as a form of pay compensation will be a particular focus of the study. A result is expected by autumn. Read more at: http://www.ft.com/cms/s/0/235ffa5c-4e17-11dd-820e-000077b07658.html





Private Equity influences Britain’s biggest private companies list

A list ranking businesses by their latest sales, claims that private equity has had a huge impact on the changing nature of Britain’s biggest private companies. Almost 50% of the listed companies are private equity owned or backed. The combined group of top 100 companies employs 950,000 employees or 3% of Britain’s workforce and contributes near to 10% to Britain’s GDP. Read more at: http://business.timesonline.co.uk/tol/business/specials/top_track_100/article4229344.ece