NAPF calls for more transparency for private equity investors

22 October 2007
Private equity investors would benefit from a greater degree of transparency within the financial services sector, according to the National Association of Pension Funds (NAPF).

NAPF representatives were responding to a consultation being carried out by the Walker Working Group, which plans to see a system referred to as "explain or comply" introduced to regulate the private equity industry.

A number of UK-based pension schemes are among a range of groups investing in private equity and the NAPF is keen to see the industry focus on making an improved quality of relevant information available, rather than simply a greater quantity.

"Overall, the approach of the Walker Group is sensible as it will inject extra transparency and accountability into private equity,"
said David Paterson, head of corporate governance at the NAPF.

"However, pension schemes looking to invest in private equity would benefit from better information and agreed reporting standards to reassure themselves that they are investing their members' money in the best possible place."

The Association of Investment Companies responded to the Walker Group consultation by insisting that private equity businesses should not be the sole focus of attention when it comes to making demands for greater operational transparency.

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