Pension trustees concerned over private equity
06 February 2008 / by None
The research, conducted by consulting experts Aon, found that around 72 per cent of 250 pension scheme trustees said that such a buyout would be a cause for concern.
Many of the trustees stated that the reason for their anxiety would be the threat to short-term funding caused by a takeover, the report continues.
Aon has noted that it is crucial that private equity firms gain the trust of large companies that they intend to take over.
Commenting on the issue, Paul McGlone, a principal at Aon Consulting, said: “The survey shows that the private equity industry still has challenges to face to win the backing of trustees, who are not just concerned by its asset stripping reputation or fears over scheme funding, but also by the attitude to scheme members.”
Aon claims to be world leader in risk management, insurance broking, reinsurance, employee benefits and HR consulting services.
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