EVCA, the industry’s European trade association, is re-organising, better to serve the increasingly disparate needs of its membership, into three core GP groups: venture capital, mid-market buyouts and mega-funds.
It will continue industry-wide activities addressing common issues and setting long-term priorities for the industry.
Javier Loizaga, EVCA’s chairman, and Helmut Schühsler, its chairman-elect and managing partner of German venture firm TVM, said in a statement: “In today’s increasingly complex and changing environment, EVCA must be able to operate in the most efficient way possible and be able to respond more quickly to changes in the industry and needs of the members.”
The European body’s move comes as the BVCA, the UK’s industry lobby group and a prominent player in Europe, is reviewing its structure after a verbal mauling over tax, employment and transparency issues from a UK parliamentary select committee this week.
Part of the BVCA’s problem, its chairman Wol Kolade said, was it had to defend the whole industry on a point that should only be relevant to the big buyout firms.
Many industry sources, including Kolade, said yesterday to PEO the BVCA’s current structure was unworkable. For some, this acknowledgement was too little too late.
A report in today’s Daily Telegraph, a UK newspaper, said a number of the big buyout firms, including TPG, KKR and Permira, have joined the Confederation of British Industry, with others, believed to include Carlyle and The Blackstone Group, considering doing so. They are not breaking away from the BVCA, but are reported to believe the business lobby group will better represent their interests at a time of intense political scrutiny.
EVCA has taken the initiative in changing its governance structure “to build more legitimacy for core member segments”. It is establishing the three GP platforms, each of which will be represented at the executive committee level.
The chair of EVCA will be selected from the representatives of each GP platform.
EVCA is also planning a board of trustees or advisors, made up of high-level politicians and business leaders to provide an additional perspective.