Charles Sherwood, a partner at Permira, has called for greater disclosure from private equity firms to help build trust in the industry.

Speaking at the Financial News Awards for Excellence in Investment Banking last week, Sherwood said: "It is important that the industry is able to get the positive message across, in particular that we can explain what drives the value growth in private equity. Its justification is not simply self-evident. Its case has to be made." Sherwood said the answer could not be about escaping disclosure requirements and outside scrutiny imposed on public markets. He said: "The argument that we succeed because we do things that other people don't find out about is hardly likely to engender trust, and do we believe that just by being secretive, we can radically transform business performance? To borrow from Richard Dawkins, it sounds terrific right up until you give it a moment's thought." Sherwood said Permira had sought to be more transparent in its business dealings and added that other buyout firms should follow that lead. He said: "For some reason, there has been secrecy about who owns the private equity funds." However, he said Permira had some way to go, above all in the disclosure of its portfolio companies. He said: "We have worked hard in this area and we are encouraging chief executives and chairmen to be as open as possible. We're working hard through the portfolio companies, rather than seeking to go over their heads." While Sherwood described the growth of the global private equity industry as "an amazing story", he said it would be some time before private equity dominated the mergers and acquisitions market.