The private equity industry must be open to scrutiny of the way it runs its companies, according to the head of the portfolio business at UK buyout firm Terra Firma Capital Partners.

Justin King, the former Sainsbury's boss who now also serves as vice chairman to Guy Hands at Terra Firma, told the Norwood Investec Private Equity Dinner on June 6: "We are investors and owners of businesses. We observe, influence and often control, and it is right that people will ask us the questions about the consequences of the influence and control."