New corporate governance code for private equity funds

In Brief

On 7 September 2011, the Australian Private Equity and Venture Capital Association (AVCAL) released a new corporate governance code for the private equity industry.

The Code is based on existing corporate governance guidelines already used by regulators such as the ASX, and builds on initiatives by other national industry associations, responsible investment advocacy groups, and public markets stakeholder groups.  

The Code contains 7 principles:

Principle 1: Promote and safeguard the interests of the fund's investors, recognising the diverse nature of those interests.

Principle 2: Embed ethical, responsible and rigorous decision-making by general partners and portfolio company boards and management.