LONDON (Bloomberg) — The UK's Financial Services Authority will next month publish market participants' feedback to its paper on potential risks created by the growing influence of private equity firms.Excessive borrowing by buyout firms to fund takeovers, abuse of market information and determining who is liable when corporate borrowers default were among seven areas of concern identified by London-based FSA in a November discussion paper.

The regulator will issue a briefing note in "mid-June" that will show market participants' response to the paper as well as any regulatory action the FSA may take, according to FSA spokesman David Cliffe.

Private equity firms including New York-based Kohlberg Kravis Roberts & Co. and CVC Capital Partners Ltd. in London have announced a record $856 billion of takeovers in the past year, according to data compiled by Bloomberg. In leveraged buyouts, firms put up a little of their own money and borrow the rest, piling debt onto the company being acquired.

The FSA's November paper also highlighted the effect buyout firms may have on the efficiency of capital markets, potential conflicts of interest and the lack of access by retail investors to private equity deals.