The objective of this guide is to assist private equity owned portfolio companies to improve the transparency and disclosure in their financial and narrative reporting by highlighting good practice examples.

The Guidelines Monitoring Group (the “Group”) was established in March 2008 to monitor conformity of the UK private equity industry with the Guidelines for Disclosure and Transparency in Private Equity (the “Guidelines”). The Guidelines resulted from an independent review of the adequacy of disclosure and transparency in private equity undertaken by Sir David Walker at the request of the British Private Equity and Venture Capital Association (“BVCA”). The Group is also responsible for making recommendations to the BVCA for changes to the Guidelines if required. The Group aims to guide and assist the industry in improving overall levels of transparency and disclosure.

In December 2010, the Group issued its third annual report on monitoring conformity by qualifying private equity firms and portfolio companies. The group is pleased to see continued improvement over the three years. Overall the Group considers that there continues to be a high level of commitment to the Guidelines from the private equity industry.

The findings of this year's review identified a higher level of compliance than in previous years. On balance many of the portfolio companies report to a standard that is generally consistent with reporting by FTSE 350 companies, and in places better.

Although the efforts made by the private equity industry are encouraging, improvement is still possible in some areas. The Group has commissioned this guide to help portfolio companies in conforming with the Guidelines. The guide includes an analysis of the detailed requirements of the Guidelines and a summary of good practice, using examples from the reviews conducted since the introduction of the Guidelines. The Group’s future assessment activity will have regard to the guidance provided to portfolio companies through this guide.

The Group encourages all private equity houses and portfolio companies to build on the achievements of the last three years and continue to enhance their levels of transparency and disclosure by using this guide.