PRINT THIS PAGE Corporate governance in private equity companies: can it add value?13/07/2005. Source: IMD. Ulrich Steger, IMD; Christian Frigast, Axcel 
Yes, says Ulrich Steger, IMD professor, and Christian Frigast, CEO at Axcel - provided both investors and management understand the differences between the private equity and stock market-quoted companies. Professor Ulrich Steger IMD professor and holder of Alcan chair of Environmental Management has recently published findings from research focused on corporate governance in private equity investment companies.
The study was conducted in collaboration with Axcel, a Scandinavian leader in the private equity field.
“The importance of PECs (private equity investment companies) is ever increasing. Today it is estimated at 10-15% of the total stock market capitalization. Everybody can be bought--so boardmembers, CEOs and senior executives should be aware of the higher complexity of governance in a PEC. A participant to one of our board programs recently commented to me: Institutional investors drive the corporate agenda in the stockmarket. But in family and private businesses it is clearly the private equity funds who are in the driver’s seat."
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