Posted on 01 August, 2020
Providing guidance to entrepreneurs and family run business owners, Mukul Gulati, Managing Partner, Zephyr Peacock, writes, “While private companies are not required by law to appoint independent directors, management teams of ambitious young companies should consider constituting a Board of Directors that include a combination of executive, non-executive and independent directors.”
Below is an excerpt from the post which first appeared on Economic Times on 1 August 2020:
Good corporate governance can help improve accountability, business performance, employee retention and shareholder value. Good governance practices can help both large publicly listed companies as well as family run businesses.
Governance of an enterprise encompasses several aspects such as the composition and role of the Board of directors, decision making process, oversight of management, compliance and compensation practices.
Good governance practices and management accountability are easier to establish at professionally run businesses. Boards of such companies generally have seasoned directors and management teams are experienced in facilitating constructive engagement with Board members. Promoter driven or family businesses often struggle in this area and an experienced, and independent Board of directors can make a meaningful difference to the long-term trajectory of such businesses.
Independent directors are critical to good governance. While private companies are not required by law to appoint independent directors, management teams of ambitious young companies should consider constituting a Board of Directors that include a combination of executive, non-executive and independent directors.
Zephyr Management is a global emerging markets investment manager, specializing in the creation and management of highly focused private equity funds
Since its inception in 1994, Zephyr has sponsored and/or managed 26 investment funds in both public and private securities markets representing approximately $1.2 billion in combined commitments and assets under management
Emerging Markets Focus
The firm has initiated several private equity funds investing in several African countries, South Korea, Mexico, India, and Sri Lanka since its founding. Zephyr's funds serve medium size enterprises that are often ignored by larger private equity players. Zephyr funds provide growth capital to established companies with proven business models and sustainable competitive advantages.
Investment activities are currently focused on India, Sri Lanka and Africa.
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The firm's special expertise lies in bringing global best practices to medium-sized growing companies by assisting them in conceptualizing sustainable business strategy, management development, compensation, ESG, expansion outside of their home country, capital structure and positioning for stock exchange listing or trade sale.