Guidelines Monitoring Group publishes third report on conformity with Walker Guidelines

13 December 2010

The Guidelines Monitoring Group (GMG), the body established to review the private equity industry’s conformity with the Walker Guidelines, has today published its third report on disclosure and transparency in private equity.

The report reviews the disclosure of a sample of 32 of the 55 Walker-compliant portfolio companies – including all those who had previously been assessed by the GMG as unsatisfactory. This has ensured that since the Guidelines were introduced in 2007, all eligible portfolio companies have been assessed on their compliance. It found that all 32 companies met the disclosure requirements in the Guidelines and reported at standards similar or superior to FTSE 350 companies. The report also found that there was a higher level of compliance with the Walker Guidelines on disclosure this year compared to previous years.

Last year’s report found that all 34 private equity firms covered by the Guidelines were in full conformity with the individual reporting requirements. This year’s report checked the continued compliance of 10 of these firms and found that they remained in conformity.

Sir Michael Rake, the Chairman of the Guidelines Monitoring Group, said:

“The improved levels of compliance with the Walker Guidelines is very welcome and confirms the high level of commitment the industry has displayed to improving levels of transparency and disclosure. Significant progress on compliance has been made since 2007, though, of course, more remains to be done.

“In particular, the Group is committed to improving disclosure further and is in the process of writing to each of private equity firms and portfolio companies reviewed this year and outlining where improvements can be made.”

To see the report, please click here