Four UK private equity chiefs attempted to defend their large tax breaks to MPs yesterday.
They appeared before the Treasury Select Committee as part of an ongoing investigation into whether the industry needs to be more transparent and tightly regulated.
Current tax breaks see private equity firms pay just 10% tax on gains made on companies they invest in.
“Private equity is a force for good,” KKR managing partner Dominic Murphy told the committee, while Robert Easton, managing director at Carlyle Group, said: “My own experience in private equity in this country has only been positive. It’s been positive for the companies I’ve been involved with.”
All four businessmen, however, welcomed a review of controversial UK tax rule, which were established a decade ago to increase investment.