Private eq pensions 'must be securely funded' - Treasury

The report outlines concerns of the Unite union, which claims some private equity deals have used pension funds to secure debt funding. Private equity buyouts typically consist of 60% debt and 40% equity. Jack Dromey of Unite, referred the committee to evidence from Standard & Poors, which says: “[it is] absolutely clear that the impact of leveraged buyouts is to depress pay and conditions of employment and pensions”. However, the British Venture Capital Association (BVCA), the private equity industry body, says the private equity industry is being singled out. Wol Kolade of the BVCA...