
Financial rewards still main incentive for chairmen of PE-backed businesses
The potential of a significant pay-out on exit is still the main incentive for working with private equity-backed businesses, according to a recent survey of 502 UK-based chairmen and non-executive directors (NEDs).
The study by Hanson Green, Directorbank and MM&K also reveals that chairmen and NEDs appreciate the straightforward approach implemented in private equity portfolio businesses in comparison with FTSE companies: 59% of respondents stated that boards of listed businesses are excessively focused on process.
Other motivating factors include a more straightforward decision-making process, a clearer business strategy, as well as a stronger focus on growth and less time spent on governance.
That said, this doesn't seem to translate into actual results in terms of effectiveness: 52% of respondents said private equity boards are fully effective, against two thirds making the same statement for listed companies.
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater