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The battle between the hands of guy and Citigroup the terms under which Terra Firma purchased EMI three years ago may seem to have a key record broken in this regard. But anyone who emerged victorious from this legal struggle, the saga has already had a deeply unfortunate side effect. This agreement was seized on by unfounded to castigate full private equity industry critics.

The truth is that whatever the outcome in the courtroom, Terra Firma has been good for EMI and capital private equity is an asset for British companies. EMI performance as a public enterprise in preceding decades should have seen there off the coast of the scene.He had a ridiculously large and overly expensive for "artists" list, sales collapsed and share market was fusion.Il melted as a company.

Look at the company now. In its last report, he recorded gains of 184 m ￡, until 15pc on the previous year.Revenues rose by almost 100 m ￡ .Division EMI Music saw 15pc, basic pay increase while publishing company music posted 13pc increase. Far from balance, EMI has behind eight wins the Brits and 24, the Grammys this year.

These successes should not be neglected because they are significant and important. They demonstrate a major strength property of private capital i.e. the ability to improve due to lack of companies through operational improvements.Capital is not about piling debt on a doubt entreprise.Sans have borrowed over and overpaid, but this does not reflect the current reality of the industry. Its strength is based on the senior management and adding real value to the companies it invests in skills. A multitude of independent studies shows that large enterprises belonged to purchase homes perform much better than their counterparts in the city.

Take Alliance Boots, which recently became only the third ever British company retail outlets to publish profit of more than ￡ billion. Or Kurt Geiger, footwear designer society registered increase 17pc turnover and an increase in remuneration 21pc.Or string New Look, which saw profits rise by almost 18pc mode.Tous three are private equity-backed and all three should be considered as champions of the British company.

Yes, there will be failures. Some losses are inevitable and owners of private capital will have to work hard and to record a profit.It is possible that some owners of capital will not reimburse their investment.

However, the virtues of the capital model lies in its approach to long terme.Sociétés private capital are not forced to sell at the first sign of trouble and have incentives to work through difficult times. Good number of companies making headlines for the wrong reasons this year again perform well. A recent study suggests that the rate of insolvency for private equity-backed companies is 10 times less than other types of private outfits.This is quite an amazing achievement and stressed how vital is our industry to the economy of British Columbia Colombia.

And its success is not based on the cartoon tired asset strippers and the number of jobs.Last week a study by Professor Oliver Gottschalg from HEC Paris found that capital companies produce more than a quarter of their statements to the expansion of the companies they invest, more than twice what they do by the restructuring of enterprises.

This is the only capital private investment is taking the least efficient or omitted companies and their repair, invest in their and help them grow.It is not a panacea, but the evidence shows that our industry is good for British businesses and good employment Colombia British constantly.Ask workers of the digest and Red Driving two School.Tous were rescued earlier this year the administration by own, securing capital positions over 500 employees.

It is not only the world business benefiting from capital; retired management skills are trop.Fonds pension have invested large sums in our industry and saw returns always more efficient markets boursiers.Des recent studies have shown that appetite for private equity is as strong as ever, including the financial advice bfinance found this plan pension fund in order to increase their attribution to our industry through almost 20pc in the next three years.

As the economy enters a period of growth, operational capital expertise at its disposal will be cruciale.capitaux is going to be particularly well placed to fix broken business and growth value for the UK investisseurs.La must this expertise.

The music is not about to stop for Guy Hands, Terra Firma or EMI and it will be neither for the private sector.

Simon Walker is Director General of the British Columbia Colombia Private Equity & Venture Capital Association

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