Governments’ scrutiny since the onset of the financial crisis has largely focused on reining in the banking sector, but they have turned their attention to private equity firms’ activities, with a series of initiatives that could bring widespread change to the industry.

The debate on tax policy in the private equity sector is nothing new, with issues such as capital gains tax and taper relief dominating attention in the UK since 2007. But while the UK's tax regime has remained relatively benign, apart from a rise in capital gains tax, policies being pursued by other European countries - specifically Sweden, the Netherlands and Spain - pose a new threat.