Looking To Improve Board Practice In PE-Backed Companies

In mid-2012, KPMG and Directorbank commissioned independent research consultancy Private Equity Research Limited to undertake a comprehensive survey of more than 300 non-executive directors and senior management who had experience of working with private equity firms.

The purpose was to look in depth at how private equity executives interact with their portfolio companies and reveal the strengths of the private equity approach, as well as the weaknesses.

The aim in carrying out this research is to contribute to the development of best practice in this key area, through increasing our private equity clients’ understanding of the issues that arise when working with senior management and the board.

The research reveals that private equity directors are generally highly regarded for their deal-making and financing skills. However, according to participants in the survey, their effectiveness when interacting with portfolio companies is more variable. The most effective make a real effort to build a relationship of trust with management and actively use their skills, knowledge and network of contacts. The least effective are perceived to add limited value beyond providing capital.

The whole report can be found by following the link below. The 3 Graces is most grateful to Directorbank for permission to use the work.

Working-with-PE-portfolio-companies

 

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