On June 20th the murky world of private equity may become a little more understandable when the Treasury Committee of MPs examines executives from five private equity companies, Blackstone, KKR, 3i, Permira and the Carlyle Group, to find evidence about their activities in three areas:
1. The regulatory environment
Is the current regulatory regime for private equity funds suitable?
Is there sufficient transparency on the activities, objectives and structure of private equity funds for all relevant interested parties?
Has there been evidence of excessive leverage in recent transactions and what systemic risks arise in consequence?
What are the effects of the current corporate status of private equity funds, including both their domicile and ownership structure?
2. Taxation
Is the current taxation regime for private equity funds and investee firms appropriate?
3. The economic context
Are developments in the environment and structure of private equity affecting investments in the long-term?
To what factors, including the current macroeconomic context and position in the economic cycle, is the current rise of private equity attributable?
What are the economic advantages and disadvantages of a firm being owned by private equity funds as opposed to being publicly listed?
Before the Treasury Committee get their teeth into the private equity guys, this week's G8 Summit Meeting in Heiligendamm.will be considering the recommendations of German Chancellor Angela Merkle that the EU tighten up the regulations and tax environment for the private equity companies.
TOMORROW MORNING: TEN GREATEST SURVIVORS
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