The document discusses corporate governance and its importance for private equity and venture capital fund managers. It outlines a corporate governance toolkit being promoted by LAVCA to unlock value in privately held companies. The toolkit addresses key elements of corporate governance like ownership structures, board oversight, controls, conflicts of interest and risk management. It also provides an overview of the toolkit's features and pilot results, which showed user interest in its educational and interactive resources.

1. Corporate Governance: A tool to unlock enterprise value at private firms Presented by Cate Ambrose President and Executive Director Latin American Venture Capital Association September 2009

3. Results of 2008 fund manager opinion survey Source: 2008 Investor Opinion Survey for Private Capital Fund Managers

4. Almost all surveyed fund managers stated that Corporate Governance is as great a factor to decide an investment as the target company’s financial position Fund Managers prioritize CG in their investment decisions Yet, we don’t see a stampede of business owners calling for help with implementing Corporate Governance frameworks! Source: 2008 Investor Opinion Survey for Private Capital Fund Managers

5. Why private business owners don’t care about CG? 1. Corporate Governance is only relevant to large, public corporations dealing with corruption cases 2. I don’t see the point of having controls, a board, etc. when my partner and I have been running the company for years without them 3. I don’t want to spend limited company resources in the systems and processes needed to implement Corporate Governance 4. I already have a board in place and know all about my company’s financial status, so why care? 5. What is Corporate Governance, anyway?

8. Ownership Structure and Conflicts of Interest Level of involvemnent and interest Time horizon for investment Family Uninvolved stockholders Active Stockholders Board of Directors Employees Daily / Quarterly Less than 5 years 5 to10 years 10 to20 years More than 20 years Open market investors Venture Capital Private Equity Pension Funds

9. Internal and External Controls Source: 2008 Investor Opinion Survey for Private Capital Fund Managers

11. Conflicts of Interest

14. LAVCA CORPORATE GOVERNANCE TOOLKIT

15. LAVCA Corporate Governance Toolkit v1.0

18. Corporate Governance Toolkit About Resources Contact us My CG locker MAIN TOPICS ABOUT RESOURCES CONTACT US MY CG LOCKER Ownership Controls Conflicts of Interest Risk Management Board Special Cases This Toolkit LAVCA How to / Tutorials External Links CG Primer CG Stats Free Publications Feedback? Saved Items Shared Items Edit my profile Signed as: amuslera | Log off ? New? Register here  Sign in  User Pass OR Register Why you should register? Corporate Governance means different things to different people. The more we know about you, the more valuable the information and tools we can provide. If you want to learn more about what kind of content you will find in this toolkit, please check this short demo Developed by Sponsored by Go CORPORATE GOVERNANCE TOOLKIT Sample screen mockup