Contents

Report Page

Summary 3

1 Introduction 5

Our inquiry 5

Scope of the inquiry 5

2 The private equity industry 7

The size of the industry 7

The growth of the industry 7

Typical fund structures 8

Rates of return 9

Future prospects for private equity 10

3 Private and public equity models compared 11

Advantages and disadvantages of private equity 11

Chain of ownership 12

Investment horizon 13

Reporting requirements 14

Incentives 14

Leverage 15

Job creation and destruction 16

Pensions 16

Public or private equity?17

4 Economic Risk and Financial Stability 19

Introduction 19

Market abuse and conflicts of interest 19

Leverage and economic risk 21

The increase in leverage 21

The economic and credit cycle 22

Covenant-lite loans 23

Excessive leverage 26

Unclear ownership of economic risk 28

5 Transparency 30

Transparency to the public and to employees 30

Independent data 32

A legislative response?33

Transparency to investors 33

The purpose of transparency 33

Competition and the fee structure 34

The TUPE Regulations 352 Private equity

6 Taxation 36

Introduction 36

Taper relief and carried interest 36

The Memorandum of Understanding 37

Tax treatment of debt and equity 38

Tax domiciliary status 40

7.Conclusions 41

Formal minutes 45

Witnesses 49

List of written evidence 50

 

[此贴子已经被作者于2009-4-23 15:44:50编辑过]