The Guidelines are intended to have funds enhance their reporting and the reporting by their large portfolio companies. They define a portfolio company as one with a market capitalization (prior to be acquired) was in excess of £300 million, more than 50% of the revenues were generated in the UK and the UK employees totaled in excess of 1,000 full-time equivalents.
The Guidelines propose that the portfolio companies should annually disclose:
- the identity of the private equity fund (or funds) that own the company
- the composition of the portfolio company’s board
- a financial review of its risk management and uncertainties facing the company
- a business review in compliance with Section 417 of the Companies Act.
The Guidelines propose that a private equity firm should publish a description of its investment approach, investment holding periods, leadership of the firm, arrangements for dealing with conflicts of interest, and categorization of its limited partners/investors.
Thirty two firms made reports. (see Appendix 1 of the Report) and 54 portfolio companies (See Appendix 2 of the Report).