PE Governance and Organization
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How a PE fund is governed, including who the various professionals within are and their roles.
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Glossary
LBO funds PE funds Private EquityTranscript
PE governance and organization most PE firms have lean HR structures with three to six levels of seniority depending on the size of the fund.
Partners at the top often layered from senior to Junior vice presidents or principals usually represent the mid-level with Associates and sometimes analysts at the junior most level.
Some funds have one partner in charge like a CEO While others will be more Collegiate and have a few Partners being in charge.
Nearly all PE firms have committees comprised of all or some of the senior most partners.
Committees will almost always include.
An investment committee to which teams will propose investment and divestment opportunities that will deliberate and make investment-related decisions and an executive committee that presides over the operations of the GP. This committee will also liaise with LPS to keep them informed as to what's happening at the PE firm.
Sometimes funds also have non-executive supervisory or advisory committees to help with governance and steering.
Most of the people at a PE firm will be investment professionals that work on the investment side of things alongside Partners a CFO and financial controller will also be part of the firm to help with fund Administration and investor reporting.
Usually investor relations and Human Resources employees will also be needed.
Reporting requirements are agreed as per the limited partnership agreement with LPS and will include monthly quarterly and annual reports valuations or meetings as well as annual audits.
These will often involve many professionals at the firm. If not, all for example deal teams of all levels will report on their respective portfolio companies. They look after.
For all portfolio companies deal team members including junior members will represent the PE funds interests as board members as well as work directly with management teams to create value.