Brown Advisory’s Post

What can Listed companies learn from Private Equity? 🤔 Despite strides in diversity & risk management, public boards still resemble those of 50 years ago. Private equity embraces an entrepreneurial model, co-creating strategy and shaping culture. Here are some key principles from PE that help make for more effective boards; 1. Participate in strategy creation. 2. Build trust through collaboration. 3. Shape company culture by engaging with employees. 4. Share information actively. 5. Embrace diversity of thought. 6. Develop future leaders proactively. Camino Search are actively supporting a number of PE investors across Europe and the US to bolster boards & management teams through our Interim, Permanent and Board Advisory practice! 💼 #InterimManagement #PrivateEquity #CorporateTransformation #Listed

“When we acquire a company, we focus on building a board of directors who are eager to work with the executive team to co-create the company’s new strategy,” our CEO Dave Layton told Harvard Business Review for a new case study on what the boards of public companies can learn from private equity.   Whilst public company boards often look similar to what they did 50 years ago, private equity firms create a governance structure at portfolio companies that is far more hands-on and entrepreneurial. The case study explains how private equity firms recognize the value of a more collaborative model in which directors can work closely with management to drive transformation and results. Please see below (free to read) to hear about the six guiding principles that the boards of private equity-backed companies follow, with input from board members and CEOs at several current and former Partners Group portfolio companies.     https://lnkd.in/e_R2URyB #PrivateEquity #CorporateGovernance

Great read from Partners Group and Harvard Business Review on how to build a board of directors that creates value: 1. Don’t just review the company’s strategy: Help create it. 2. Don’t just expect trust. Build it. 3. Don’t just assess the company’s culture. Help shape it. 4. Don’t just receive information. Provide it. 5. Don’t just look different. Think different. 6. Don’t just fire CEOs. Get to know future ones.

Do Private Equity firms care where their portfolio company CEOs live?? ....well kinda We surveyed 170 private equity investors to find out what they required for star performer CEOs. It was clear: investors wants their portfolio company leaders on-site BUT they are also fine with executives living elsewhere and incurring those costs Analysis: Atta Tarki and Olivia Hanninen, PhD #privateequity #mbb #middlemarket

#boardofdirectors #nacd #privatecompanies #privateequity JD M. attended an amazing Webinar by NACD (National Association of Corporate Directors) on board of directors for private companies. Here is an article related to that Webinar. What Boards of Public Companies Can Learn from Private Equity URL: https://lnkd.in/eCehzcbB

Joining the panel session at Bayes Business School's 14th Annual Outlook for M&A event on Monday evening was a great way to start the week as my fellow panellists and I debated recent activity in the global M&A market and shared perspectives on the direction of the market in 2024. I came away from the session with further confidence in my cautious but optimistic view that we will see a stronger M&A market and a steady improvement as we go through 2024. There are a number of factors supporting this including improved financial markets, pent up demand from buyers and sellers, more realistic pricing expectations as well as significant capital available to be deployed.  But perhaps more important than all of these are the speed of macro changes all companies continue to face, be that continued technology disruption (including AI), the transition to net zero, supply chain and workforce shifts accelerating the need to adapt and transform their business models.  There is little doubt we will remain in a higher interest and cost of capital market for a while to come, meaning Value Creation strategies will become more critical to global M&A in ensuring a sufficient return to shareholders and broader stakeholders. Huge thanks to our panel chair Susan Kilsby Advisory Board Chairman, and Scott Moeller, Director of the M&A Research Centre at Bayes, it was my pleasure to be involved. I’m also delighted to announce that KPMG has recently become a Senior Sponsor of the Mergers and Acquisitions Research Centre (MARC) at Bayes Business School working closely with its outstanding research to explore the emerging issues in M&A globally across all sectors and industries, so watch this space for more insights and perspectives on the future of M&A …  #kpmgdeals #digitaltransformation #privateequity #MandA

What Boards of Public Companies Can Learn from Private Equity: Public company boards have made quite a few upgrades over the past decade. They have become far more diverse, more focused on risk management, and more attentive to the environmental impacts of the companies they oversee. But in other ways, public company boards still look eerily similar to what they looked like 50 years ago, when modern governance rules were first enacted after the high-profile collapse of Penn Central. Directors basically still show up to board meetings once a quarter to approve the strategy, discuss risks, and once every five years or so, select the next chief executive officer. This seems strange, particularly since the world around them has changed so much. This approach to board oversight is dramatically different than the ways boards work in the private equity (PE) world. When PE firms build boards for their portfolio companies, they create a governance structure that’s far more entrepreneurial. PE owners recognize the value of a more collaborative model in which directors — often former CEOs themselves — can work more closely with management to drive transformation and results more efficiently. Also, because PE companies are not publicly traded, they are able to spend less time on the formal, bureaucratic, and procedure-laden practices that the SEC requires of public companies. Specifically, boards of PE companies focus on a handful of guiding rules: 1. Don’t just review the company’s strategy. Help create it. 2. Don’t just expect trust. Build it. 3. Don’t just assess the company’s culture. Help shape it. 4. Don’t just receive information. Provide it. 5. Don’t just look different. Think different. 6. Don’t just fire CEOs. Get to know future ones.

What Boards of Public Companies Can Learn from Private Equity #PrivateEquity #ValueCreation #Governance #CorporateChange Harvard Business Review https://lnkd.in/eX95QJrS

From hands-on involvement to proactive succession planning, private equity boards offer a unique approach to driving success. Discover the key differences between public and private-equity-owned company boards in this read from Harvard Business Review. https://ow.ly/PFW130sBv4K

Nearing the end of our inaugural Pathway programme, the 60 Participants from 33 Investment firms have had their final training session of the programme. Our participants were joined by Mitesh Sheth MBE (Newton Investment Management Group), Rosanna Burcheri (Fidelity International), Lucy Bowyer (Invesco EMEA) and Amrita Chauhan Sanyal, CFA (HSBC Asset Management) who delivered an empowering session discussing the best ways to embrace the opportunities and navigate the potential challenges they now have before them. Here is a snapshot of the advice shared by our hosts: - Develop your own Personal Board of Directors - ensure they bring a different lens, cultural intelligence, and motivation that will help you mitigate your own blind spots.  - Seek out people who will not only be your cheerleaders but also those who are different to you, and who challenge you the most - they are especially invaluable in helping you become a leader over time. - Create a system of mentorship from people within your inner circle and those from across your newly formed network that align the best for you.  - Trusted conversations are key to establishing support for yourself. Don’t feel you have to be superwoman or put too much pressure on yourself - delegate and share responsibility when needed. If you feel you need more support from your firm, be honest with what you need. - See your career as a season rather than a single destination in itself. If you are in a role where you are learning and growing, consider discomfort in your role as a good thing especially early on in your career. "What You Can Do, or Dream You Can, Begin It; Boldness Has Genius, Power, and Magic in It." - Goethe #DiversityProjectPathway #ClosingThePMGap #FutureFemalePM