Private equity has long lost its mantle as the enemy at large in the capital markets. The banks now have become the focus for public opprobrium, to such an extent that there is little ire left to be expended on other corners of the financial world. The European Union, belatedly, seems to be acknowledging this as it moves in the direction of common sense in shaping the regulation of private equity.
Yesterday's news that the European Council had put forward a compromise text that was in line with the European Parliament's prevailing position was encouraging. That private equity should be lumped into the Alternative Investment Fund Management Directive seems anyhow to be unnecessary but, since its inclusion appears to be inescapable, the drive has to be to achieve a regime that is at least workable. The European Venture Capital Association has greeted the latest development enthusiastically, saying it shows the Swedish presidency to be "clearly cognizant of the unique contribution venture capital can make to European innovation and long term economic growth."
Original Article: Common sense and private equity - WSJ.com