European Private Equity & Venture Capital Association (EVCA) Chief Executive Dörte Höppner said: “European private equity, including venture capital, has a significant contribution to make to the long-term financing of Europe’s businesses and economy.
The EVCA welcomes today’s Communication, which recognises the industry’s role in supporting SMEs and helping investors such as pension funds meet their long-term liabilities.
“This is an encouraging step in the right direction but policymakers must encourage the best conditions for investment in long-term investment vehicles, such as private equity funds, whose engaged, patient capital boosts innovation, competitiveness, productivity and growth in the companies they back.”
The Commission today also adopted a proposal to revise the Institutions for Occupational Retirement Provision Directive (IORP Directive).
EVCA Director of Public Affairs Michael Collins said: “Internal Market Commissioner Michel Barnier was true to his word and did not propose Solvency II style capital requirements for pension funds. Long-term asset classes such as private equity do not now have to fear they will be priced out of the market for pension fund investment.
“Long-term investors such as pension funds or insurers must not be deterred from private equity by inappropriate capital requirements because this will only block much needed investment in European companies and make it harder for those investors to serve their customers.”