Regulation of private equity firms is unlikely to change, Jeremy Cooper, deputy chair of the Australian Securities and Investments Commission, told an industry conference this week.Cooper told the annual conference of the Securities and Derivatives Industry Association that opinion within the regulatory community, the financial services industry and the legal and accounting professions was for current regulatory arrangements to stand.Cooper said his finding was based on an assessment of the 21 submissions made to the Senate Standing Committee on Economics' inquiry into the regulation of private equity.The committee was asked for an assessment of domestic and international trends concerning private equity and its effects on capital markets, and an assessment of whether appropriate regulation or laws apply to private equity. Among those who made submissions were the Law Council of Australia, the Australian Institute of Company Directors, the Takeover Panel, the National Institute of Accountants, Securities and Derivatives Industry Association and the Council of Financial Regulators.Cooper said: "On the whole submissions do not seem to favour a change in the regulatory regime."Cooper said ASIC's own view was aligned with the findings of the Council of Financial Regulators, which were reported in the Reserve Bank's Financial Stability Review in March. That review said private equity could play an important role in ensuring an efficient and dynamic business sector.It said increased leverage did not appear to represent a significant near-term risk to either stability of the financial system or the economy more broadly.Cooper said: "Given the potential implications of private equity activity for the depth and integrity of public capital markets, as well as the importance of investors understanding the risks they are taking on, ASIC will continue to monitor developments closely."According to Cooper's figures, funds held by private equity firms equate with 1.75 per cent of the value of Australian listed equities.In Australia in 2006 buyout firms borrowed an average 6.5 times the target company's annual EBITDA, up from five times a few years ago. In the UK leverage was 6.41 times EBITDA at June last year. The average multiple in the US is eight times, up from six times in 2000.Debt accounts for about 70 per cent of funding used in buyouts. Equity accounts for the remaining 30 per cent, leading to a debt to equity ratio of around 235 per cent.This compares to the general gearing of listed non-financial entities of around 65 per cent.