In the new financial world that’s followed the credit crisis, private equity managers are providing valuable capital for growth businesses, while making sure that they’re fit for the more regulated, transparent environment.
The International Finance Centres (IFCs) that host private equity funds are working hard to adapt – so that they comply with changing regulatory requirements and yet still offer an environment in which private equity forms offer a fair return to investors and benefits local economies.
Governments are tightening regulation of private equity and increasing tax scrutiny. They’ve the backing of public opinion, which fervently believes the financial sector doesn’t contribute sufficient economic value to society. In Europe, the collision of Anglo-Saxon and continental European socio-economic models has fed criticism. But even in the US 2012 presidential campaign, the Democrats have questioned private equity’s socio-economic value.