Cinven, a European buyout firm, is compiling Walker-compliant reports across its entire European portfolio going beyond the established guidelines, according to its spokesman.
The much-vaunted transparency initiative drawn-up by Sir David Walker, the ex-Morgan Stanley chairman, has criteria limiting the reach of its voluntary guidelines to companies with 50 percent of their revenues in the UK and 1000 UK employees. Companies bought in non-public to private bids with an enterprise value of more than £500 million (€660 million; $992.9 million) will be expected to comply; while companies bought in take-private bids should have a market capitalisation of £300 million.
Phadia, a Swedish pharmaceutical company in its portfolio, and Gala Coral, a gambling group jointly owned with Candover and Permira, have already published compliant annual reports.
Cinven said in its first Walker-compliant annual review that it will be opening an office in Hong Kong and in New York. The global expansion does not reflect the firm’s plans to carry out larger buyouts in the US and Asia like several rival European firms such as Permira, Apax Partners and BC Partners, the spokesman said. Instead the firm will use the office for investor relations and to develop European portfolio companies.
Other firms that have completed a Walker-compliant annual report at the firm level include Terra Firma, Permira, Doughty Hanson, Bridgepoint and Montagu Private Equity.
The Terra Firma report was the most extensive; providing details of staff remuneration and the profits at all portfolio companies. This was not required by the Walker guidelines.