Private equity group says supports regulation

The private equity industry said on June 17 that it supported US President Obama’s overhaul of the regulation system, even though it would result in new regulatory oversight for many private equity firms.

Obama laid out his vision for reshaping US financial regulation on Wednesday, aiming to tighten oversight of large firms whose excessive risk-taking triggered a global economic slump.

The Treasury also wants advisers to hedge funds, private equity funds and venture capital funds, whose assets under management exceed a not-yet-determined level, to register with the Securities and Exchange Commission.

The Private Equity Council (PEC) said in a statement that while private equity firms “do not create systemic risk” it supported the concept of collecting data from firms.

“The plan calls for private equity firms to register as investment advisers with the Securities and Exchange Commission,” said Douglas Lowenstein, PEC president, in a statement. “We support this proposal, even though it will result in new regulatory oversight for many private equity firms.”

Washington-based PEC’s members include Bain Capital; Blackstone Group; Carlyle; and Kohlberg Kravis Roberts.