Private Equity

Revealed: Audit regulator upgrades risk of private equity investment to ‘high’

The audit watchdog is concerned that short term backers could erode good corporate governance, create conflicts, and ultimately oversee worse audits

The FRC’s concerns include ‘overly short-term profit motives’ and a ‘sudden exit by private equity providers from the audit market after three-five years’
The FRC’s concerns include ‘overly short-term profit motives’ and a ‘sudden exit by private equity providers from the audit market after three-five years’

The UK’s audit watchdog recently upped the potential risks it thinks private equity poses from “medium” to “high”, internal documents obtained by Financial News show.

Buyout giants have struck a host of deals for professional services in recent months, including Hellman & Friedman and Valeas Capital Partners’ purchase of Baker Tilly and New Mountain Capital backing Grant Thornton.

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