We read almost hysterical articles daily in the press demanding transparency in private equity. This journalist chant, whilst mesmerising, is pretty imprecise in exactly what it is seeking.
Transparency is self-evidently a virtue, so arguing against it is may be a little like arguing in favour of greed, fraud or manipulation. However, the intrinsic virtues of transparency really find their roots in the public markets, where a clear and legitimate right to know exists. Private equity now represents a huge proportion of western economies (never mind the M&A market). Too often it does little to prevent itself being perceived as a black box worthy of suspicion, probably concealing greed in its shrouds of confidentiality. But what is the transparency that people want to see and what are the legitimate reasons for it?
