AVCAL releases private equity governance code

As with the ASX Corporate Governance Principles and Recommendations, if a private equity firm elects not to adopt any aspect of the code, they must be in a position to explain why not.

Bill Shorten welcomed the code at a launch today, saying: "I congratulate AVCAL on developing a Code of Private Equity Governance.

"Corporate governance is particularly important for private equity general partners given their active role in the management of the entities they invest in," said Bill Shorten, assistant treasurer and minister for financial services and superannuation. "As a growing and dynamic part of Australia's financial services industry, I am keen to see private equity continue to improve Australia's overall productivity and strengthen Australia as a financial services center."

AVCAL CEO Katherine Woodthorpe said that the move codifies many of the activities and governance mechanisms already being implemented by private equity industry participants. She added that the code also helps demonstrate the long-term value private equity ownership can bring.

Last week, Cambridge Associates published the latest Australia Private Equity and Venture Capital Index (APEVC Index), which found that private equity outperformed public markets in the first quarter of 2011, continuing a trend that dates back nearly a year. AVCAL has also released a study that concludes private equity-backed IPOs perform better than those without PE involvement.

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• Topics
• Australasia
• Regulation
• Performance
• AVCAL