The mounting financial crisis at Thames Water should offer pause for thought to those who believe that private equity is the magic money tree that will power British growth and investment.
Since its 2006 purchase by funds run by the Australian investor Macquarie and passage onward, the debt-laden company has become an unfortunate case study for private capital — as the buyout barons of old now style themselves — particularly when Thames Water is held up against the performance of its London-listed peers.
You would expect me to write as much, coming from the vantage point of the Quoted Companies Alliance — an organisation that champions public equity and particularly the mid-sized and small-cap companies whose shares are traded on London’s stock markets.
• Why