PERG | Walker Guidelines Monitoring Group publishes 2014 annual report - 5 December 2014
05.12.2014

Walker Guidelines Monitoring Group publishes 2014 annual report

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

Compliance levels continue to improve among the portfolio companies in the sample covered by the report, with all 25 achieving either a good or excellent level of disclosure, with the proportion of the latter increasing to 16% from 9% in the 2013 study. This is a positive development in light of the improvement in disclosure standards on the FTSE 350, the benchmark used by the Group. One area of concern, however, is in regards to the publication and data provision requirements, which some companies failed to meet.


Key highlights from the report include:

  • Portfolio companies markedly improved the level of disclosure covering strategy, the market environment and principal risks and uncertainties. However, disclosures covering environmental matters and social and community issues were weaker.
  • Only 20 of the portfolio companies reviewed made the audited report and accounts available on the company’s website and a further two published a Walker Guidelines-compliant report that was not the full audited accounts. The Group continues to reinforce the message that accounts should be readily accessible on the company’s website and will be monitoring this in more depth next year, including the requirement to publish, within the six month period.
  • The number of portfolio companies required to comply with the Guidelines decreased by one to 71, following a record year of transaction activity since the Guidelines were implemented in 2008. This includes five portfolio companies that exited and re-entered the population following a change in ownership.
  • The number of private equity firms managing or advising funds which owned the portfolio companies within scope increased by two to 55. The Guidelines extend to firms that conduct their business in a manner that would be perceived by external stakeholders to be similar to that of other participants in the private equity industry and the new entrants were all ‘private equity-like’ firms. Following a further review this year, the Group amended the definition of private equity firms covered by the Guidelines to include these firms.

This year also saw the first amendments to the content requirements in the Guidelines, incorporating new narrative reporting requirements and a statement of conformity for portfolio companies. This will make it more difficult to achieve a good or excellent level of compliance next year and eligible companies are urged to take this into consideration in the upcoming reporting season.


Read the report

Published 5 December 2014

Download the Private Equity Reporting Group Seventh Annual Report
Nick Land

Chair of PERG said:

“I was delighted to see compliance levels improve again this year, with a growing number of companies reviewed providing an excellent level of disclosure on their activities. When considered in the context of our benchmark, the FTSE 350, and desire to monitor compliance against the better performers in this cohort, the results for 2014 are pleasing. Looking to the year ahead, portfolio companies will need to amplify their efforts when complying with the latest edition of the Guidelines. These were revised due to the introduction of the strategic report in narrative reporting in the UK and will raise the bar for compliance.”

Media Contacts

For further information, to learn more about the PERG or the Guidelines contact [email protected].


Notes to editors

Reports published

Published 5 December 2014

Download the Private Equity Reporting Group Seventh Annual Report


The Walker Guidelines

In February 2007 the BVCA asked Sir David Walker to undertake an independent review of the adequacy of disclosure and transparency in private equity, with a view to recommending a set of guidelines for conformity by the industry on a voluntary basis. This review resulted in the publication of the Guidelines in November 2007.

The Private Equity Reporting Group

The Private Equity Reporting Group (PERG) is an independent body that was established in March 2008 to monitor conformity with the Guidelines and make periodic recommendations to the BVCA for changes to the Guidelines if required.

The PERG is chaired by Nick Land, a non-executive director on a number of boards and previously the executive chairman of EY in the UK. He is supported by two other independent members: Baroness Drake, a labour peer and former president of the TUC, and Glyn Parry, an experienced finance director working with FTSE companies such as BT Group.

Representing the private equity industry are Ralf Gruss, Chief Operating Officer at Apax Partners, and Tony Lissaman, Chief Operating Officer of 3i Group’s private equity business.

More information about the PERG can be found here.