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Private equity chiefs are rushing to testify their willingness to be more open about the activities of a sector that can now swallow $45bn public companies whole.



But just how wide are they opening the door - not just to schmooze and PR but to accept genuine restrictions to rein in the rogue deals that many in private equity acknowledge do exist (though, obviously, not on their watch)?

They seem genuinely surprised that after years of hiding in the shadows they have become, reluctantly, centre stage in a global debate about the financialising of the global economy.



At the private equity birthday bash in Frankfurt this week one key player - Guy Hands of Terra Firma Capital – even talked of the “mob” and warned of emotions. Mr Hands may well come to regret ever using the word “mob”. Actually the people who are worried about the unregulated activities of private equity and their buyouts include millions of decent workers who worry that, however hard they work, their jobs may still be destroyed by debts, dividends and massive “management fees” dumped on their companies by new and greedy private venturers.



Mea culpas in Frankfurt’s Congress centre will not be enough to re-assure workers and their unions - both national and global. None of the venturers has yet talked about whether they are willing to engage with employees, their unions and communities. Are rewards from their multi-income streams (fees, dividends and sale profits) going to be divided to include workers who dedicate their lives to making a company successful long beyond the five-year sell-by-date of private equity?



Are private equity groups ready to accept public disclosure of their activities, their fee levels and their pay levels? Are they willing to accept responsible ceilings on the amount of debt that can be loaded on to acquired companies? Will they accept corporate social responsibility and commit to sustainable development? Will regulators act to ensure that executives in target companies continue to act on behalf of shareholders and not opt to quietly and lucratively fall in with a buyout? And will governments - who have seen only this week how unstable are global stock markets - actually stand up to the new unacceptable faces of capitalism and take action, particularly to ensure the long term stability of pension funds and pensioner livelihoods?



We welcome the first moves by the UK’s City Minister to explore transparency issues with private equity. But we want clear rules – preferably Europe-wide – not some prawn cocktail of a voluntary initiative.



Philip Jennings, General Secretary, UNI global union



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