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These are the facts

Is private equity about short-term profit?

The average holding period of private equity and venture capital investment is 5.5 years. Many investments are held for much longer. This compares very favourably to the average investment hold of stockmarket investors, of less than one year.

Does private equity pose risks to the economy that must be controlled?

The long term and illiquid nature of private equity and venture capital means it is a stabilising influence in the economy. Investors lock-in their capital for a decade or more, allowing private equity to support companies through thick and thin. Recent independent reports from de Larosiere and the European Central Bank have confirmed that private equity played no role in causing or exacerbating the recent crisis.

Does private equity impose leverage that makes businesses and jobs vulnerable?

The majority of private equity investments involve little or no debt. When leverage is used it is not a blanket formula but tailored to suit the characteristics of the business in question.

But private equity firms are not regulated?

Private equity firms are regulated through a framework of national and European laws, addressing their operational practices and structure.

Private equity's portfolio companies adhere to national corporate law. The industry has an exemplary track record of adherence to the highest professional standards.

Do private equity firms dodge tax?

Private equity funds use tax transparent structures to ensure that their investors, the largest of which are pension funds that are not subject to domestic taxation  are not exposed to double taxation. At portfolio company level, investments are subject to the same taxation regime as all other companies.