This seventh annual report from the Guidelines Monitoring Group ("GMG"), published in December 2014, discusses disclosure and transparency in private equity. The report made the following observations:

  • Compliance levels have improved in portfolio companies;
  • Portfolio disclosure has improved with regard to strategy, the market, and risk assessments, however disclosure around environmental and social matters was not as strong;
  • No portfolio companies explained non-compliance, despite the Guidelines applying on the basis that the companies either comply, or explain non-compliance; and
  • GMG is considering a consultation on the Guidelines in order to make the requirement to confirm compliance mandatory.

The report is available at:

http://walker-gmg.co.uk/sites/10051/files/141204_gmg_guidelines_final.pdf.

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