Private Equity to be named and shamed

Private Equity companies that fail disclose sensitive information such as job cuts and financing plans will be named and shamed, Sir David Walker has warned.

Walker, who was tasked by the industry with improving transparency and conduct, told the FT that he wanted to toughen up the original proposals outlined in a report released two weeks ago, following calls from politicians who felt the moves did not go far enough.

The former Morgan Stanley International chairman said he would not shy away from naming companies that did not comply with his code, and failed to reveal how a deal was financed, disclose strategy or publish plans for job cuts or factory closures.

He said companies announcing buy-outs will also have to name board members and management teams.

Walker's reviewed template for disclosure follows the release this week of a Treasury Select Committee report on private equity, which asked Walker to introduce more proposals to ensure compliance with his code.

'Since the Select Committee asked for more emphasis on monitoring, then naming and shaming has to be an option. But I have to decide if we do it now, or leave it there as a sword of Damocles hanging over them,' said Walker.

Further reading:

Read the select committee report

Private equity reporting load to increase

Read the Walker Report