Issues surrounding corporate governance are gaining tractions, experts have said, with hedge funds, private equity and real estate ventures now queuing up to fill independent non-executive positions.
“Having been a topic totally ignored for many years, [corporate governance’s] sudden discovery is like a religious conversion. Now everyone is a believer,” said Caroline Hoare, a director of IPAF, which places independent directors with alternative funds.
Since the organisation was established in 2011, demand for the company’s panel of non-executive directors has largely been from the offshore hedge fund sector looking for independent board members.
However Hoare said that during surveys, private equity and real estate funds had indicated strong demand, particularly in the Channel Islands, which is an area that typically set the trends that are later picked up in London.
Increased scrutiny
Moreover, increasing interest from regulators like the Financial Conduct Authority and equivalent bodies overseas has also encouraged funds to take an interest in governance.
Hoare explained: “You have to satisfy the regulator that you have a real presence, and not just a cardboard cut-out board.
“I predict that every fund in the alternatives space will be compelled to show a strong, committed and competent board in order to become successful and, while this is only one ingredient for success, it’s an easy one to achieve.”
