PE associations: Passing the torch

The EVCA today announced the appointment of BVK's Dörte Höppner as secretary general, following the departure of Javier Echarri at the end of 2010. Earlier this year, BVCA chief executive Simon Walker also took the decision to stand down in 2011 and the association is now on the lookout for a successor. The same challenge is faced by French trade body AFIC as its director-general Jean-Yves Demeunynck recently left office to focus on personal projects.

All three associations have been particularly active in recent months and, in many respects, one could certainly understand the need to unwind following the arduous AIFMD battle. Both Walker and Echarri were very vocal in their opposition to the Directive; even if they remain concerned about certain features, the compromise agreed upon and voted through in October left them with a relative sense of accomplishment. "The Directive agreed upon is, in a number of respects, a major improvement on what it might have been" stated Walker.

Commenting on his decision to leave the EVCA in May, Echarri pointed to the final stages of the AIFMD process as being a turning point in his mandate: "While there remains much for EVCA to do at macro level, representing our members to policymakers and the public at large, the end of this year offers a natural watershed for me - with the new governance and structure of EVCA up and running and the Directive process concluding."

However, the next chapter in the AIFMD saga might keep the PE trade bodies busy in months to come. The new rules must now be transposed to local law in all EU countries, which should offer associations a chance to develop closer relations with policymakers. In addition, the industry is starting to prepare for the necessary operational changes introduced by the Directive - another occasion for the likes of EVCA to encourage interaction between private equity players and promote best practices.

Moreover, the AIFMD is part of a wider public relations challenge faced by the private equity world. The global financial crisis served as a catalyst drawing attention to a little-known and often misunderstood asset class, as Simon Walker put it while commenting on the AIFMD agreement: "The EU has taken a hostile interest in the wrong industry at the wrong time and for the wrong reasons." The AFIC has also been working diligently to promote the virtues of growth capital and healthy buyouts as opposed to "casino" speculation. This is a goal that will need to be pursued harder than ever by PE associations as the tough economic environment lingers on - and will require them to engage not only with policymakers but also the media and general public.

It is therefore fitting that Javier Echarri's successor, Dörte Höppner, comes from a broadcast media background and is well versed in EU lobbying. Her future peers at the BVCA, the AFIC and indeed the BVK itself, will need to be equally public relations-savvy and motivated to navigate the bumpy road ahead - the torch is being passed on, and it is burning hotter than ever.

 

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