Analysis

Mark Florman defines ERR; Awards deadline Friday

Source: UK unquote | 02 Jul 2013 | screening image

With shareholders most concerned with IRRs, the wider public has long been talking about the industry’s wider impact on society. Specialist industry adviser Mark Florman talks with Kimberly Romaine about measuring positive externalities

That private equity impacts more than just its shareholders has never been more evident. EVCA's appointment last week of its first LP chairman was testament to the industry's need to engage with a wider stakeholder base.

While the industry is long on performance metrics, it is woefully short on measuring its wider contribution to society, according to Mark Florman, formerly BVCA chairman and now a special adviser to the industry.

"This industry is particularly good at generating [positive externalities] but particularly poor at mentioning it," he says. "Many assume the external impact [of private equity] is neutral, or even negative if we have to cut jobs. In emerging markets, the presumption is that private equity and venture capital will only ever make a positive contribution. A metric to show the contribution to job creation, tax generation, to the environment, to land use, to IP, product development, local supply chains, manufacturing skills... that is your external rate of return (ERR). It can be negative, but I'm pretty certain that it's usually positive."

The unquote" Awards celebrate innovation and excellence in the British private equity industry. Entrants are encouraged to shout about their positive ERRs – particularly in the GP categories, where detailing exits. Last year, every exit on our competitive Shortlist had generated jobs for the businesses they backed – an achievement the judges were incredibly proud of.

Entries for this year's Awards are due this Friday by 4pm. Details, including entry forms, can be found on the awards site. Be sure to read our tips for entering.

Visitor Comments

 

Add your comment

We won't publish your address
By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication.

search unquote.com

Industry news

HIG credit arm appoints director

New hire joins from Banca IMI, where he was director

Southern Europe unquote

| 23 Oct 2014 | secure

KPMG promotes three

Two take over role previously carried out by Richard Clarke

UK unquote

| 23 Oct 2014 | secure

Balderton hires Debock as principal

Balderton hires Debock as principal

Balderton increases focus on France through appointment of Debock

France unquote

| 23 Oct 2014 | secure

Duff & Phelps recruits two MDs in London office

Newby and Mahalingham appointed to transfer pricing practice

UK unquote

| 23 Oct 2014 | secure

Updating your subscription status Loading

People

Nicolas Debock of Balderton Capital

Nicolas Debock, Balderton Capital

Balderton increases focus on France through appointment of Debock

More people news

Paul Skipworth of L Capital

Paul Skipworth to lead London office

More people news

Stephen Delaney of Bowmark Capital

Stephen Delaney, Bowmark Capital

New investment director Delaney previously Darwin Private Equity principal

More people news

Jake Warman of Sovereign Capital

Jake Warman, Sovereign Capital

Appointments follow firm's £395m fund close in August

More people news

Frederic Devos of Macquarie

Frédéric Devos, Macquarie Capital

New hire specialises in utilities and infrastructure

More people news

Events

event

unquote" Italia Private Equity Forum

Date: 12 Nov 2014
Location: Milan, Italy
event

Forum unquote” Italia sul Private Equity

Date: 12 Nov 2014
Location: Milan, Italy

Email Alerts