NO
Many private equity firms are in it for the quick profit. In a few instances, they have turned businesses around. However, recent experience and the way companies have reacted to current debate exposes ‘casino capitalism’. They are poorly regulated money-making machines. They will close sites, slim down the workforce and dump pension schemes. Sometimes they load a company with debt and take the tax advantages.
Tony Burke
Assistant general secretary
Amicus
YES
When companies become involved in private equity, senior management has a good idea of what is going on. Private equity provides a period of certainty. Typically, investment lasts between five and seven years. This creates a long-term business plan to work towards. Companies on the stock exchange often have to prepare themselves against hostile bids, which isn’t a constructive use of time.
Nicholas Mockett
Europa Partners
YES
It is sufficiently transparent and the concerns being whipped up about private equity are the negative and truly damaging issue. It is the fear of the unknown that worries people. Quoted investors have long since deserted print. As private equity becomes more prevalent, it will automatically assume a more personal face. It will be recognised as a welcome source of capital.
Mike Dolan
Managing director
Media & Print Investments
MAYBE
You must enter into business with your eyes open. If someone has a private equity stake, they will want some control and a return on investment. A sharp investor will see where their money will work the hardest. If owners or management are unsure then they should ask questions. It is important to understand investors’ objectives. Any investment comes with strings attached. The level of transparency depends on the questions that are asked.
Cicely Brown
Deputy chief executive and commercial director
BPIF
Is the private equity industry transparent enough?
Private equity is facing criticism for its lack of social reponsibility, poor regulation and unclear business role. The CBI has defended it, but says the sector needs to justify its importance. Are private equity investors clear enough?
