47 min
Evolution of Governance In The UK Public, Private Equity and Startup Markets with Patrick Dunne Boardroom&Beyond Podcast
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- Management
In this episode, Lyndsey discusses with experienced Chair Patrick Dunne. Patrick is the Chair of Ernest Young EY Foundation, Chair of ESSA (Education Sub Saharan Africa), Chair of Boardelta, author of award winning “Boards” book. Patrick worked at one of the largest multinational private equity firms, 3i Group plc, for 26 years, and has been serving as board chair for various UK and international organizations. Patrick also served as a member of Higg’s review and played a role in shaping governance policy for UK listed companies.
In his book “Boards” and three other books, Patrick has helped to establish many successful courses on board skills over the last twenty years and helped Chairs across a wide range of sectors to transform the effectiveness of their boards.
The conversation starts with an overview of UK corporate governance (CG) development milestones in UK’s modern business world - Candbury Review, Greenbury Review, Higgs Review, Sir David Walker Code, most recent UK CG Code updates in 2018, the main focus and iconic achievements from each review respectively, and the UK culture influence to the conversational principle based UK CG system.
Patrick explains different focus of CG code between public companies (to protecting small investors) and private equity firms (to protect sophisticated investors); shares his experience as a member of the Higg’s review, and experience at private equity firm, 3i Group plc, when implementing Sir David Walker code, the very first CG code for private equity industry.
Patrick also explains the investment strategy difference between hedge funds and private equity firms, investors exit strategy trend in public and private market, points out that maximizing investors’ value is as important as managing risks.
They also talk about how the board can encourage board members to understand financial dynamics at an organization’s different growing stages, create conditions to build and maintain trust with all stakeholders, and conclude that healthy corporate culture is essential for the long-term success of any organizations across public, private and startup markets.
At the end, Patrick shares his opinion regarding international corporate governance development trends in the next 5-10 years.
Conversation Highlights (with timestamps)
Overview of UK corporate governance (CG) development milestones in UK’s modern business era (3:47) Different focus of CG code between public companies and private equity firms (16:10) The reason Patrick participated Higgs review & private equity firms’ value creation philosophy (17:49) Investment strategy difference between hedge funds and private equity firms (19:36) Private equity firm’s reaction to CG review from Sir David Walker code (23:30) Public market trend in past years, different exit strategies for investors and the new trend (26:10) Experience building startup boards for ESSA and EY Foundation (32:57) Golden rules of building successful boards (35:01) Managing and maintaining key relationship and trust with all stakeholders (38:45) Definition of “trust” (41:11) International corporate governance development trend in next 5-10 year (42:18)
More Information About Guest – Patrick Dunne
Linkedin: https://www.linkedin.com/in/patrickdunne2/ Twitter: patrickedunne Email: patrickedunne@gmail.com Websites: leapcc.org.uk (Leap) warwick.ac.uk/warwickinafrica (Warwick in Africa)
In this episode, Lyndsey discusses with experienced Chair Patrick Dunne. Patrick is the Chair of Ernest Young EY Foundation, Chair of ESSA (Education Sub Saharan Africa), Chair of Boardelta, author of award winning “Boards” book. Patrick worked at one of the largest multinational private equity firms, 3i Group plc, for 26 years, and has been serving as board chair for various UK and international organizations. Patrick also served as a member of Higg’s review and played a role in shaping governance policy for UK listed companies.
In his book “Boards” and three other books, Patrick has helped to establish many successful courses on board skills over the last twenty years and helped Chairs across a wide range of sectors to transform the effectiveness of their boards.
The conversation starts with an overview of UK corporate governance (CG) development milestones in UK’s modern business world - Candbury Review, Greenbury Review, Higgs Review, Sir David Walker Code, most recent UK CG Code updates in 2018, the main focus and iconic achievements from each review respectively, and the UK culture influence to the conversational principle based UK CG system.
Patrick explains different focus of CG code between public companies (to protecting small investors) and private equity firms (to protect sophisticated investors); shares his experience as a member of the Higg’s review, and experience at private equity firm, 3i Group plc, when implementing Sir David Walker code, the very first CG code for private equity industry.
Patrick also explains the investment strategy difference between hedge funds and private equity firms, investors exit strategy trend in public and private market, points out that maximizing investors’ value is as important as managing risks.
They also talk about how the board can encourage board members to understand financial dynamics at an organization’s different growing stages, create conditions to build and maintain trust with all stakeholders, and conclude that healthy corporate culture is essential for the long-term success of any organizations across public, private and startup markets.
At the end, Patrick shares his opinion regarding international corporate governance development trends in the next 5-10 years.
Conversation Highlights (with timestamps)
Overview of UK corporate governance (CG) development milestones in UK’s modern business era (3:47) Different focus of CG code between public companies and private equity firms (16:10) The reason Patrick participated Higgs review & private equity firms’ value creation philosophy (17:49) Investment strategy difference between hedge funds and private equity firms (19:36) Private equity firm’s reaction to CG review from Sir David Walker code (23:30) Public market trend in past years, different exit strategies for investors and the new trend (26:10) Experience building startup boards for ESSA and EY Foundation (32:57) Golden rules of building successful boards (35:01) Managing and maintaining key relationship and trust with all stakeholders (38:45) Definition of “trust” (41:11) International corporate governance development trend in next 5-10 year (42:18)
More Information About Guest – Patrick Dunne
Linkedin: https://www.linkedin.com/in/patrickdunne2/ Twitter: patrickedunne Email: patrickedunne@gmail.com Websites: leapcc.org.uk (Leap) warwick.ac.uk/warwickinafrica (Warwick in Africa)
47 min