PRIVATE INVESTMENT FIRM
SUBSIDIARY GOVERNANCE FRAMEWORK
A MIDDLE EAST PRIVATE INVESTMENT FIRM REQUIRING A SUBSIDIARY GOVERNANCE FRAMEWORK FOR ITS INVESTMENTS.
A relatively young but successful Investment Firm had built up a global portfolio of corporate investments, holding both minority and majority shareholding positions, in both venture capital and private equity size positions. Their challenge was to design and implement a subsidiary governance framework to generate a higher return on investments without stifling entrepreneurship in their investment subsidiaries.
Governance Creed helped design and implement a subsidiary governance framework capable of adapting to investment sizes from VC to pre-IPO. Business planning and budgeting processes, clear authority matrices, roles of subsidiary boards and management committees, group reporting requirements and a group wide repository of governance policies, procedures and governance guides were created and rolled-out to investment subsidiaries. For larger investments, this included designing the subsidiary Boards and their skill sets requirements.
The clarity generated with a clear subsidiary governance framework has helped resolve “who does what at what level” and has allowed the holding Investment Firm to obtain better oversight on its current portfolio and expand its investments without compounding governance complexities.