The Private Equity Reporting Group (the “PERG”) has reviewed the private equity industry’s conformity with the Guidelines for Disclosure and Transparency in Private Equity (the “Guidelines”). The Guidelines, recommended by Sir David Walker in 2007, seek to increase transparency through enhanced reporting and disclosure by the largest UK portfolio companies and their private equity owners. The PERG was established in March 2008 to monitor conformity with the Guidelines and make periodic recommendations to the British Private Equity and Venture Capital Association (the “BVCA”).

Key findings

• This review covers 56 portfolio companies (2017: 54) that fall within the scope of the Guidelines and the 51 firms (2017: 59) that back them (private equity firms and those operating in a private equity-like manner).
• All portfolio companies reviewed in the sample complied with the disclosure requirements in the annual report this year (2017: 79%). Comparing only those portfolio companies that have complied with all of the disclosure requirements in their annual reports, 73% prepared disclosures to a good standard (2017: 80%).
• 81% of portfolio companies have published an annual report in a timely manner on their website (2017: 78%). 74% of portfolio companies have published a mid-year update in a timely manner on their website (2017: 72%).
• 7% of portfolio companies have not complied with any of the three components of the Guidelines that apply to them this year (2017: 12%). These companies are backed by non-BVCA members.
• All BVCA members have published certain disclosures on their own websites to communicate information about the firm, its portfolio companies and its investors as required by the Guidelines or provided an explanation.
• 85% of portfolio companies have provided data, which is presented in aggregate in the EY performance report published alongside this report (2017: 85%).