Will more regulation disrupt the PE sector?

Author: Olly Jackson | Published: 15 Feb 2018

Private equity investment is performing at a level not seen since 2007. According to a Preqin report, private equity firms raised a record $453 billion last year, beating the previous record in 2007 of $414 billion. But in light of this incredible performance, EU plans to increase regulation on a historically unregulated sector could lead to disruption this year.

In what has historically been a highly unregulated industry, plans to bolster regulation in private equity could make firms and businesses worried, but Phil Sanderson, global co-head of private equity at Ropes and Gray, said regulation in this area would not necessarily be a negative.

"Regulation is not a bad thing for private equity: it makes the industry grow up", he said.

Despite the frustration from private equity players, Sanderson said the industry has "moved on from being entirely private". Investments in public goods such as healthcare and infrastructure is said to justify greater...