Monday 19 November 2007

Private equity update

A couple of bits of news from the private equity world that are worth a look. First up is this bit from the Telegraph, seeking to 'expose' unions for having money in PE as an asset class. As far as I am aware no-one from the TU side has actually ever said don't invest in private equity, the argument has been understand what you are getting into.

But now that the issue of investment in PE is out in the open surely it is time that unions developed an investor-oriented strategy? Why not start building some social responsbility requirements into any future investments? Some of the bigger pension funds could surely put a bit of pressure on via this route. Personally, though it's not an exciting idea to many activists I'm sure, I think going in on the fees angle could be the most productive because there are genuine questions to be answered. Even people in the PE industry are surprised they don't get more pressure from investors over fees. If unions could get in the lead of this argument it could put them in a powerful position for the future. Just an idea...

Separately, this bit in today's FT is a little pre-reaction from the BVCA to the Walker Review report coming out tomorrow. Although there is the now obligatory threat of overseas relocation, it is a fair point (isn't it?) that the sort of transparency being planned in the UK is something of a world first.

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