2016 PERG Reports
The Private Equity Reporting Group (PERG), the body established to review the private equity industry’s conformity with the Walker Guidelines has published its annual report on disclosure and transparency in private equity. Compliance by portfolio companies covered by the Guidelines has reduced slightly again this year to 88% (2015: 95%). However, only 57% of the portfolio companies reviewed have achieved an overall good or excellent level of quality of disclosure, whereas 95% achieved this level in 2015. This decrease in standards was primarily due to a backdrop of higher standards seen in the FTSE 350, the benchmark for judging compliance.
In the current environment, with an increased emphasis on the transparency and conduct of the largest privately-held businesses in the UK, the private equity industry must increase its efforts to improve the quality of reporting in 2017.