House of Lords slams PE for “financial engineering and tax avoidance”
On Thursday 21st July, in the very last session before the summer recess, the House of Lords debated the economic and social risks of private equity.
In his address, Lord Sikka, who secured the debate, said that private equity should, “really concern us all. In my view, it is likely to be the location of the next major financial crash, and there will not be enough money to bail out the affected entities.”
Specifically, regarding the way in which private equity funds and deals are structured, Lord Sikka pointed to Thames Water, owned by a private equity consortium fronted by Macquarie Bank, from 2006 to 2017.
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