Almost 500 private equity-backed businesses across Europe have urged EU legislators not to force them to disclose more information than their competitors.
Almost 500 private equity-backed businesses across Europe have urged EU legislators not to force them to disclose more information than their competitors.
The businesses, which include UK-based technology innovator CamSemi, digital marketing specialist Adconion and beverages retailer Bargain Booze, have signed a petition calling on the EU to rethink the Alternative Investment Fund Management (AIFM) directive, which in its draft version would require private equity-backed companies to reveal key financial information.
They call for a ‘level playing field for all’, adding, ‘We do not see why there should be one set of rules for private equity and venture-backed businesses and a different set of rules for their competitors just because of other types of ownership – whether owned by families, oligarchs or large conglomerates.
‘If protections are necessary, they should be afforded to stakeholders of all private businesses, and dealt with through horizontal company law.’
The AIFM directive was put forward in response to the financial crisis, and sets out to regulate all “alternative investment funds”, including private equity, venture capital and hedge funds.
The signatories to the petition argue that private equity and venture capital played no part in the financial crisis and should not be lumped together with other types of investment vehicle.
