Sovereign wealth funds and entrepreneurs such as Sir Philip Green should be made to comply with the same code of conduct being introduced for private equity firms.

Sir David Walker, the City grandee who is author of the new code, said yesterday that sovereign funds, such as those backed by Qatar and the United Arab Emirates, and rich individuals such as Sir Philip and Sir Richard Branson were similar enough to private equity to be governed by the same rules.

He said: “They are investors using principal and leverage with ambitions which are not unlike private equity . . . as a matter of public policy they ought to be subject to a similar regime.”

Private equity firms such as Blackstone, Permira, CVC and Kohlberg Kravis Roberts have spent the year being attacked by unions, politicians and the public for not being open enough about their deals. They have been accused of being “asset-strippers” who cut thousands of jobs and exploit tax loopholes to cream off ever-bigger profits.

In response, the millionaire buyout bosses have said that their activities are no different to entrepreneurs such as Sir Richard and any criticisms of the industry should also be levelled at the Virgin boss and others like him.

At the same time, pressure has been mounting for greater disclosure by sovereign wealth funds after British and American politicians have said that their lack of transparency could fuel a new round of financial protectionism.

Sir David, who was commissioned by the British Venture Capital Association (BVCA), the industry lobby group, to review private equity’s transparency, said that he had spoken to the Qatar Investment Authority, (QIA).

“They indicated they were ready to come in,” Sir David said yesterday, adding that those conversations were cut short by the collapse this month of the QIA’s bid for J Sainsbury, the supermarket group. Sir David said that he had also had “light conversations with Dubai”, but could not have detailed discussions until his review had been formally announced today.

“I think if these people wish to be able to continue to invest here, they will sweeten the atmosphere by conforming to the standards,” he said.

Simon Walker, chief executive of the BVCA, said that the trade group was set to introduce a new membership category that includes entrepreneurs and sovereign funds.

A spokesman for Virgin said: “We’ll have to see exactly what the proposal is. Intrinsically, we feel that we give out a great deal of information like this already. Virgin Media is a public company, we’re considering a flotation of Virgin Active and if we take over Northern Rock, that will be a public company, too.”

The code of conduct

Portfolio companies owned by private equity should:

— Publish annual reports and accounts on their websites within six months of the year-end
— Reports should detail the identity of the private equity fund that owns them, senior managers and advisors
— Publish a business review that sets out trends and factors likely to affect the future of the company’s business
— Provide data to the British Venture Capital Association

Private equity firms should:

— Describe their structure and investment approach and confirm that arrangements are in place to deal with conflicts of interest
— Post on websites their limited partners by geography and type
— Follow established guidelines in the valuation of assets when reporting to limited partners
— Ensure quick and effective communication with employees, either directly or through their portfolio company

The British Venture Capital Association should:

— Engage with private equity firms to encourage commitment to the guidelines
— Undertake a study of the economic impact of private equity
— Improve its representation of large private equity buyouts
— Establish an independent guideline review and monitoring group to monitor compliance by private equity firms and portfolio firms

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