This is the fourth annual report of the Guidelines Monitoring Group (the “Group”) and provides a summary of the private equity industry’s conformity with the Guidelines for Disclosure and Transparency in Private Equity (the “Guidelines”) following their introduction in November 2007.

The Group was established in March 2008 to monitor conformity with the Guidelines and make recommendations to the British Private Equity and Venture Capital Association (the “BVCA”) for changes to the Guidelines if required. The Group has oversight for and aims to guide and assist the industry in improving transparency and disclosure.

Key findings

• Forty-three private equity firms are covered by the Guidelines this year, an increase of eight from the prior year. Within this population, one “private equity” firm has not been able to comply with the guidelines. Dubai International Capital have noted that whilst they are committed to transparency in disclosure in portfolio companies they are unable to accommodate the additional specific disclosures as required by the Guidelines.
• A total of seventy-eight portfolio companies are covered by the Guidelines this year. Of this number, sixty-nine are included as required companies, and nine as voluntary (see appendix 2). This compares to a total of fifty-five portfolio companies that were covered by the Guidelines last year, forty-three of which were included as required companies and twelve included as voluntary.
• Of the seventy-eight companies, Park Resorts, a GI Partners portfolio company, have been unable to comply with the Guidelines this year. GI Partners have expressed a commitment that they will comply with the Guidelines in future years.
• The changes in the number of portfolio companies covered by the Guidelines this year is a consequence of transactions that have taken place during the year and meeting the amendments to the Guidelines thresholds, agreed in April 2010.