You are here: Home - Uncategorized -

‘More openness’ means more trust for private equity

0
Written by:
05/03/2007

The British Venture Capital Association (BVCA) has agreed to adopt a voluntary code in a bid to be seen as ‘more open’ by critics who view venture capital firms as closed and secretive. The agreement came during a conference in Frankfurt.

There have been fierce attacks on the industry in recent months, mostly by unions and MPs, as more private equity firms make a UK investment in British companies and take them off the indexes and stock exchanges.

The private equity firms use clients’ money and borrowed money to buy companies and turn them around. In the UK they have bagged the AA and Birds Eye, amongst others like Incisive Media. There are also currently plans for a consortium of private equity firms to buy Sainsbury’s.

The private equity firms have backing from the Government, with Chancellor Gordon Brown praising their ability to create jobs quickly and make a significant UK investment in the British economy.

But the unions have accused the private equity firms of being too secretive and of a poor record towards employees when they have taken over companies.

Firms like Permira, that bought the AA and Birds Eye – and sacked many people – have provoked particular fury amongst the unions. The GMB union claimed the voluntary code of agreement was “too little, too late”.

However, continuing the theme of Government support for the industry as a means of promoting UK investment, economic secretary to the Treasury, Ed Balls, welcomed the announcement and said: “Private equity is an important part of the UK financial services sector and can play an important wider economic role creating jobs and developing companies.”

 

 

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Savings accounts benefit from the rate rises

Recent interest rate rises have prompted more people to compare savings accounts, with investors’ confidence in the property market dented,...

Close