Guidelines monitoring group announces changes to the definition of a portfolio company to be covered by the enhanced reporting guidelines
31 March 2010
Following a consultation process with impacted members, the Guidelines Monitoring Group has recommended that the enterprise value thresholds which define a portfolio company are lowered to £350 million (£210 million for public to private transactions). The changes will become effective for accounting year ends 31 December 2010 and onwards.
This follows changes made to section V.3 of the Guidelines for Disclosure and Transparency in Private Equity (the “Guidelines”) in December 2009 which recommended that a portfolio company be defined as one which meets the value thresholds and generates more than 50% of revenues in the UK or has 1, 000 or more full-time employees.
Notes to Editors:
Definition of a portfolio company to be covered by enhanced reported guidelines will now be:
A UK company:
a) Acquired by one or more private equity firms in a public to private transaction where the market capitalisation together with a premium for acquisition of control was in excess of £210million, more than 50% of revenues were generated in the UK or has 1, 000 or more full-time employees.
b) Acquired by one or more private equity firms in a secondary or other non-market transaction where enterprise value at the time of the transaction is in excess of £350million, more than 50% of revenues were generated in the UK or has 1, 000 or more full-time employees.
For further information please contact Gurpreet Manku.
A copy of the Guidelines can be found by clicking here