PERG | Private Equity reporting guidelines set for major refresh as transparency from the sector increases on last year
16.12.2021

Private Equity reporting guidelines set for major refresh as transparency from the sector increases on last year

Top lines:

  • The Private Equity Reporting Group’s (PERG) 14th annual report on industry transparency and dis-closure, published today, has found that all the annual reports reviewed in the sample are com-pliant with the basic disclosure requirements of the Walker Guidelines (Guidelines) (2020: 93%).
  • The independent PERG, set up in 2008, reviews the private equity industry’s compliance with the Guidelines. These Guidelines require thorough and transparent reporting at a standard compara-ble to companies listed on the FTSE250, for the largest private equity owned businesses in the UK.
  • Today’s report goes on to show that, of the portfolio companies within the scope of the Guide-lines, 67% prepared disclosures to at least a good standard which is a continued improvement on prior years (2020: 60%, 2019: 53%). Compliance with the publication requirements for the annu-al report and a mid-year update was also up on prior year but could be improved further.
  • The PERG has also announced today that a wholesale review of the Walker Guidelines will take place in 2022 to ensure they not only reflect emerging industry trends but capture future disclo-sure requirements expected in the coming years. PERG has also published interim recommenda-tions to enhance the quality of disclosures and transparency of reporting.

Press Release

The Private Equity Reporting Group’s (PERG) 14th annual report on industry disclosure and transparency, published today, has found that all of the annual reports reviewed in the sample are compliant with the Sir David Walker guidelines for disclosure and transparency in private equity (Guidelines).

The PERG, which was established in 2008 and makes periodic recommendations to the BVCA, reviews compliance with the Guidelines for the largest private equity owned businesses in the UK.

The Guidelines encourage thorough and transparent reporting at a standard comparable to companies listed on the FTSE250. Portfolio companies that fall within the scope of the Guidelines, due to their size and significant UK presence, are expected to comply or provide an explanation as to why it was not possible to do so. In 2021, 64 UK portfolio companies fell within scope and, each year, a sample of around a third of these are reviewed for compliance with the requirements.


Further key highlights from this year’s report include:

  • 67% of companies within scope of the guidelines prepared disclosures to at least a ‘good’ standard (2020: 60%, 2019: 53%), a notable increase given the larger proportion of new companies reviewed for the first time in the sample (2021: 64, 2020: 61). However, no companies produced ‘excellent’ disclosures this year (2020: Two).
  • All BVCA members in scope, published disclosures on their own websites to communicate information about themselves, their portfolio companies and their investors.
  • There has been an increase in improvement in disclosures on sustainability topics, compared to previous years, largely driven by the number of companies providing Streamlined Energy and Carbon Reporting in the UK and the importance of employees to a business. However, the quality of reporting on gender diversity still needs to be improved.

Alongside the 2021 report, the PERG has also announced a wholesale review – and subsequent refresh – of the Guidelines, to commence in early 2022, to ensure they remain fit for purpose.

This is to take into consideration current and forthcoming changes to the reporting landscape, ensuring the Guidelines not only reflect emerging industry trends but capture future disclosure requirements expected in the coming years.

The refresh is also to further reinforce the industry’s drive for transparency following increased stakeholder interest in private equity after a spate of high-profile transactions involving well-known UK businesses.

As an interim measure, the PERG has made recommendations on areas where portfolio companies could enhance the quality of reporting now. To assist, the good practice guide has been published alongside the report which highlights examples of good disclosures by private equity-backed companies.


Read the reports

Published 16 December 2021

Download the Private Equity Reporting Group Fourteenth Annual Report

Download the EY Report on the Performance of Portfolio Companies

Download the PwC Good Practice Reporting by Portfolio Companies Guide
Nick Land

Chair of PERG said:

“The 2022 refresh of the Walker Guidelines is welcomed by the private equity industry as it provides an excellent opportunity to articulate its value to both society and the economy. This review will work to dispel perceptions about the transparency of the industry, as well as keeping an open dialogue with all who are interested in how the industry operates. As majority owners in major UK businesses, private equity firms are well placed to play a major role in responding to challenges such as climate change, supporting sustainable growth and a post-pandemic economic rebuild. The PERG was pleased to see improvements in many areas this year, but the increased scrutiny from high-profile deals shows that higher levels of transparency and disclosure need to be sustained.”
Michael Moore

Director General of the BVCA, said:

“The BVCA endorses the PERG’s recommendations and supports the review of the Walker Guidelines, as does our membership. While private equity's reporting standards are already comparable to that of listed companies, increased reporting transparency will help provide a better understanding of the industry, bringing with it an increase in trust. Private equity has to be forward-looking to be successful and therefore its reporting standards and disclosures should be no different. This refresh shows an industry committed to keeping ahead of wider trends and evolving alongside the reporting landscape."
Additionally, reports produced by both PwC and EY in conjunction with the PERG have also been published on the BVCA’s website. Designed to be read in tandem, both the ‘Good Practice Reporting Guide for portfolio companies,’ and the ‘Annual Report on the performance of portfolio companies,’ further highlight the private equity industry’s commitment to transparency in their activities and commitment to the UK economy.


Media Contacts

For further information, to learn more about the PERG or the Guidelines contact [email protected].


Notes to editors

Reports published

Published 16 December 2021

Download the Private Equity Reporting Group Fourteenth Annual Report

Download the EY Report on the Performance of Portfolio Companies

Download the PwC Good Practice Reporting by Portfolio Companies Guide


The Walker Guidelines

In February 2007, the BVCA asked Sir David Walker to undertake an independent review of the adequacy of disclosure and transparency in private equity, with a view to recommending a set of guidelines for conformity by the industry on a voluntary basis. This review resulted in the publication of the Guidelines in November 2007.

The Guidelines have four main components – three that apply to portfolio companies and a fourth that applies to the private equity firms managing or advising funds that own the portfolio companies:

  • Portfolio companies should prepare disclosures as stipulated in the Guidelines in their audited annual report and financial statements, and prepare a mid-year update.
  • Portfolio companies are required to publish their annual report and a mid-year update in a timely and accessible manner on their company website.
  • Private equity firms should publish certain disclosures on their own website.
  • Portfolio companies are required to share certain data, which is presented in an aggregated performance report by EY to illustrate the contribution of private equity to the UK economy.
  • The Guidelines operate on a ‘comply or explain’ basis.

The Private Equity Reporting Group

The Private Equity Reporting Group (PERG) is an independent body that was established in March 2008 to monitor conformity with the Guidelines and make periodic recommendations to the BVCA for changes to the Guidelines if required.

The PERG is chaired by Nick Land, a non-executive director on a number of boards and previously the executive chairman of EY in the UK. He is supported by two other independent members: Baroness Drake, a labour peer and former president of the TUC, and Glyn Parry, an experienced finance director working with FTSE companies such as BT Group.

Representing the private equity industry are Ralf Gruss, Chief Operating Officer at Apax Partners, and Tony Lissaman, Chief Operating Officer of 3i Group’s private equity business.

More information about the PERG can be found here.


Population within the scope of the Walker Guidelines

64 portfolio companies were required to comply with the Guidelines this year (2020: 61). The number of private equity firms managing or advising funds that owned portfolio companies within scope was 56 this year. This includes 23 firms that conduct their operations in a ‘private equity-like’ manner, such as infrastructure, credit and pension funds.