Adding Value to Strategic Advice


There is increasing regulatory focus on the need for substantial commercial experience to be demonstrated by independent non-executive directors of private equity and venture capital funds. This focus will also place considerable reliance on the practice of good corporate governance and an understanding of the appropiate procedures involved in it.

Involvement in a non-executive role will centre upon key performance benchmarks, ongoing oversight of risk and the sustainability of value growth in the underlying investments.

Such an involvement gives an assurance to private equity and venture capital fund administrators, investment managers, partners and shareholders that there is regular independent external assessment of the investments and the board level commercial experience vital to informed review.

A strategic background to the board's review of investment policy and performance, combined with integrity in analysis and the creation of added value through such involvement, are at the core of the independent director role.