Private companies

Directors and executives of private companies controlled by private equity, venture capital, families and entrepreneurs are invited to take our ESG oversight survey.

Drawing on insights from our work and interactions with public and private company directors and business leaders, we’ve highlighted nine items for private company boards to consider as they focus their 2021 agendas.

Directors and management of private companies considering a sale to a special purpose acquisition company should be aware of the opportunities as well as the oversight-related challenges and tradeoffs a transaction may present.

Harvard Business School professor Victoria Ivashina discusses the outlook for private equity investing and the impact on governance and oversight.

Resources and insights for private company owners and corporate directors amid the challenges presented by COVID-19.

Investors’ ability to assess strategy and operations at their portfolio companies is largely dependent upon the effectiveness of their portfolio company boards.

While the impact on private company boards, management, operations, and disclosure varies—and largely dependent on ownership—a shift is apparent in how institutional investors are directing capital and increasing expectations for private company reporting on ESG.

The private equity portfolio company lead director can be key to building board agendas, serving as a mentor to the CEO, and leading oversight of strategy development and execution.

For young and growing companies, particularly those backed by venture capital funds, board building is often more informal and less strategic. Yet a long-term approach to building a strong board as the company grows can make a difference.

Discussion about board oversight of sexual harassment issues often comes up only after public allegations have thrown the company into crisis.

For a CFO of a new start-up company, this is a time of tremendous opportunity. Roles and responsibilities are being formalized, processes and controls are being implemented, and cultures and capabilities are being transformed.

As an increasing number of firms are driven by intangible, knowledge-based assets and are more frequently funded through private investors, accounting choices are expected to play a more significant role in a company’s success.

Given the expected five- to seven-year holding period for portfolio companies, boards may be able to avoid having to make a switch in two years by being more proactive in assessing the CEO early in the ownership period.

Diversifying the composition of private-equity portfolio company boards is a significant challenge, yet opportunties to change are just as abundant for these firms as they are public company boards.

In collaboration with the KPMG Board Leadership Center, the National Association of Corporate Directors has produced Building a Foundation for Growth: Governance in Investor-Owned Private Companies.

In a start-up climate that is becoming more attuned to company culture, many venture investors we work with say that a working knowledge of corporate governance for early-stage company founders is a critical factor for funding negotiations

Nearly 90 percent of U.S. companies that have gone public since the Jumpstart Our Business Startups (JOBS) Act was passed have taken advantage of the Act’s reduced disclosure provisions.

Sunny Vanderbeck, a managing partner and co-founder of Dallas-based Satori Capital, is trying to prove that a stakeholder-centric approach to private equity investing can generate returns at or above market expectations.

Getting board composition right is a challenge no matter the company size or ownership structure. Many private companies, however, face a different set of challenges than those encountered by their public company counterparts.

For former executives, the transition from managing a company on a day-to-day basis to serving on a board can be difficult. This is especially challenging at private equity (PE) portfolio companies where the dividing line between C-suite and boardroom is often porous by design.