Transparency in business bestows an aura of credibility and fidelity, whereas a lack of it breeds suspicion and lingering doubt – a notion the private equity (PE) industry is, or should be, well aware of.
To be sure, the PE industry, composed as it is of a multitude of funds, trusts and other financial vehicles, is a magnet for criticism when it comes to the level of transparency it sees fit to offer external parties. Such criticism has done nothing but escalate in the years since the financial crisis.
Samuel K. Won, founder and managing director of Global Risk Management Advisors, believes that the PERG report simply confirms what has been well known within the UK PE industry for some time: that the quality and quantity of the transparency supplied is limited and can vary substantially from firm to firm.
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