Private Equity Fund Set Up and Governance
In this video, Gavin explains the basic structure of a private equity firm, before delving into the structure and governance of funds and its fund managers.
Overview
There are between 6,000 and 8,000 private equity firms worldwide. A few are very large firms but most are mid cap firms employing 10 to 20 people. Funds are set up as partnerships, with the main governance bodies being the Investment Committee and the Advisory Board. Fund Managers can be independent or have LPs as shareholders. They are rewarded by an annual management fee and a profit share, known as the “carried interest”. Fund Managers have frequently had a previous profession.
Key learning objectives:
Structure and governance of funds
Governance and economics of Fund Managers
Summary
Expert
Gavin Ryan
Gavin Ryan has twenty years’ experience as a private equity fund manager. He has managed a $30m Advent International Affiliate Fund, a $200m Fund part of Soros Fund Management and a €2.5bn Green Energy Asset Manager. Before he was in investment banking with HSBC and Nomura. Gavin has an Engineering Degree from Cambridge and an MBA from McGill.
