Board Relationships

The videos in this part of the course concentrate on the soft skills and savvy needed by both independent directors and inside directors serving on the boards of private equity-backed companies. If you aspire to a portfolio company board seat, do you recognize yourself in the picture painted by our serving directors? If you are a manager with a private equity firm, watch and listen to learn how you can meet your goals and leverage the value of board member expertise. Seated directors: we hope the experiences shared here will be useful as you continue to navigate your own board’s dynamics.

If Board Colleagues Forget Their Fiduciary Responsibilities

Employees of the Private Equity firm will always be the majority on the portfolio company board. They may not know—or care—as much about fiduciary duties as an independent director does—even though they are equally responsible for governance. PDA members with first-hand experience share tips on how to handle this sensitive situation.

Learning Objectives:

• Identify the drivers of PE director, company executive and independent director behaviors, and demonstrate an awareness of how differing imperatives can make governance challenging.
• Read the dynamic of the board and pinpoint how and where differences in objectives and strategic misalignments can arise, outlining the value of the objective role of independent directors.
• Recognize the resilience, character and interpersonal skills necessary to survive and succeed in a portfolio company boardroom, and accurately assess your own ability to serve well as a director in this sector.
• Explain why traditional PE networks may no longer provide the directors needed to serve on boards of portfolio companies.
• Describe how boards can benefit from the diversity and perspective a true independent director can provide.