The Association of Investment Companies (AIC) today welcomed the Treasury Select Committee Interim Report on Private Equity.
‘The Committee report is a balanced and fair attempt to separate reality from the hype and hysteria, says Daniel Godfrey, firector general of AIC. ‘In particular, the welcome given to the work of Sir David Walker is most encouraging and I hope that the industry will be able to use the coming months to turn the philosophical approach into a framework of practice that addresses any legitimate concerns whilst preserving the essential commercial flexibility of the sector.
‘Private Equity and Venture Capital has added huge value to the UK. It brings positive innovation which cannot take place without change and change can sometimes be painful. But this does not mean it should be stopped or even diluted as, in the long run, it maximises economic growth and employment.
‘As Private Equity becomes responsible for high street brands, it is legitimate that a wider group of stakeholders should take an interest in the stewardship of those companies in the broadest sense. And it is in the interests of the Private Equity sector to respond to those stakeholders by engaging with them openly and willingly in so far as such engagement does not compromise their commercial objectives.
‘Listed investment companies that focus on Private Equity investment were seen to be models of transparency and disclosure and I expect that their example will increasingly be adopted across the sector.
‘I now look forward to a more measured debate over some of the issues raised such as carried interest over the coming months.’