EY Report on the Performance of Portfolio Companies
This report presents aggregated data collected by EY from PE firms and their companies. It tracks the performance of companies under PE ownership against listed company and other benchmarks.
This is the 15th annual report on the performance of portfolio companies, a group of large, private equity (PE) owned UK businesses that met defined criteria at the time of acquisition. Its publication is one of the steps adopted by the private equity industry following the publication of guidelines by Sir David Walker to improve transparency and disclosure, under the oversight of the Private Equity Reporting Group (PERG).
This report addresses many questions that various stakeholders may have on the impact of private equity ownership on large UK businesses, by presenting facts and benchmarks to provide answers. The report is designed to be read stand alone, summarising the accumulated data over the past 15 years of reporting; it also contains comparisons with last year’s results and, for some measures, shows time series trends.
Answers to key questions for stakeholders addressed in this report:
- Do portfolio companies create jobs?
- How is employee compensation affected by PE ownership, e.g., pay and pension benefits?
- Do portfolio companies increase or decrease investment in capital expenditure, R&D and bolt-on acquisitions or partial disposals?
- What are the levels of financial leverage in the portfolio companies, and how do they change over time?
- How do labour and capital productivity change under PE ownership?
Do companies grow during PE ownership?
- What is the level of gender diversity in the portfolio companies?
- How do PE investors generate returns from their investments in the portfolio companies? How much is attributable to financial engineering, public stock market movement and strategic and operational improvement?
Read the report
Published 20 February 2023
Watch the webinar
Recorded 8 June 2023
This webinar, hosted by Ciaran Harris, BVCA Policy Manager, will introduce the Walker Guidelines process before James Walker, Kelsey Gray and Disha, take us through the EY annual report on the performance of portfolio companies. The EY team will run through the information gathering process, including the information gathering template, and discuss some common errors and frequently asked questions.
This is a great opportunity for portfolio companies and their owners to learn more about the Walker Guidelines and, importantly, the EY process.