Action Plan

Overview

In the past few years, EVCA has provided an array of focused products and services for members and information for wider stakeholders in our industry. Historically, the Association has reviewed its strategic priorities every three years. In 2007, though, it was agreed that this should be done on an annual basis. In 2008, the priorities will be devised on the basis of the first annual evaluation of trends in the industry and implications of those trends for EVCA and its members.

On the basis of regular feedback from members, the Secretariat is of the opinion that the industry showed remarkable resilience in the face of the credit squeeze in 2007, while making real steps to address issues arising from wider debate on our business model. The effects of both challenges remain in 2008 and influence our thinking. 

A proposal on new priorities will be submitted at the General Assembly in June 2008. After approval, the Secretariat will proceed with implementation.

 

Initial Proposals for 2008-2009

In past years, EVCA has listed a large number of activities that it would be undertaking for the succeeding year.  The association’s new platform-based structure makes it easier to define projects that have benefits for membership. The following is a look at, but not all of, the activities and initiatives planned for 2008.

1. Industry Standards and Transparency

Objectives 

The private equity industry has a long history of professional standards and self-regulation. While the industry has not always highlighted its standards and regulations to those indirectly concerned in its operations, the track record of self-regulation is something that EVCA was able to reference successfully at EU level many times in 2007. EVCA will reinforce this to wider constituencies and stakeholders in 2008-2009, and reinforce the validity and credibility of the industry’s own self-regulation.

An example is valuation guidelines. Private equity and venture capital managers refer to these when they estimate the value of their assets in their financial statements and reports to investors. EVCA was closely involved in establishing the International Private Equity Valuation Guidelines (IPEV). An objective for 2008 is to achieve global recognition and application of these guidelines as the IPEV Board is expanded to include new representatives from European countries, Australia and the USA.

Actions

  • Ensuring thorough understanding among EU and national policymakers of the effectiveness of the industry’s professional standards and self-regulation alongside national regulation.
  • Training practitioners in professional standards.
  • Producing annual benchmarking studies on the tax and legal environments for private equity across Europe, as guides for policymakers and regulators.


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2. Positioning EVCA and the Industry Objectives

Objectives

Communication has become an ever-more important aspect of EVCA’s work, with bearing on the long-term positioning of the industry and of EVCA. We will continue to draw attention to the different strengths of the three segments of private equity while affirming their common values. This can only be done if stakeholders are addressed effectively by the sum of the parts of the industry through EVCA and national associations.

Reinforcing EVCA’s unique position as a pan-European membership-based association will be top-of-mind in 2008. The Association is responsible for representing the industry at European Union level and, while independent of national associations, works closely with them on industry-wide self-regulation, professional training and data, and providing support as required on national issues. Doing this benefits EVCA members and the industry.

The Association will be making the case for the industry at EU level and supporting general partners at local level in ensuring that stakeholders in the activities of the industry understand what it does, how it functions, and the long-term benefits of private equity to employees, employers, suppliers, customers, pensioners and the economy at large.

Actions

  • Persevere in efforts to coordinate and encourage information sharing with and between the national associations across Europe to ensure that the industry presents a common face, particularly on public affairs issues.
  • Continue to promote the industry to investors both in Europe and internationally.
  • Support and assist with the respective communications activities of the three platforms.
  • Develop EVCA positioning in relation to international organisations, such as the OECD, IOSCO and the Financial Stability Forum.
  • Maintain and foster communications channels with European policymakers and regulators, trade unions and employers’ federations.


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3. Research

Objectives

EVCA plans to publish a number of independent studies on topics central to the debates on the industry’s activities in 2008-2009. To make the case for buyout and venture capital, it is necessary first to qualify and quantify the benefits that the industry brings and to be realistic about any negative effects. These studies will show findings in such areas as returns and industrial relations.

One example of EVCA’s work is the development of independent data provider PEREP_Analytics, whose first industry data is being used in 2008. The culmination of nearly two years’ work, PEREP_Analytics is an independent non-commercial database, supplied with data by EVCA and 14 national associations and monitored by an independent board. This database will be a source of increasing detail about the industry, not previously available.

Actions

  • Ensuring efficient data collection to assist in the analysis of long-term trends and to meet the demands for information from governments, regulators and other stakeholders.
  • Using EVCA data analyses to increase the understanding of general partners and limited partners of the direct and indirect impacts of legislative initiatives at European and global level.
  • Continuously updating and revising EVCA regular publications.
  • Supporting the continued development and wider endorsement of PEREP_Analytics.
  • Assisting in independent research projects to assess the economic impact of the industry.


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4. Active Member Engagement

Objectives

EVCA will develop interaction between the Association and more of its members through the three platforms that were created in 2007- Venture Capital Platform, Mid-Market Platform and Large Buyout Platform.

Actions

  • Organising workshops and discussion forums with member segments throughout the year.
  • Using a variety of online tools and the new enhanced members section of the redesigned EVCA website.
  • Maintaining and building upon successful EVCA Institute training programmes.
  • Continuing developing and adapting the content of courses to meet evolving needs of the industry.
  • Continuing proactive membership outreach and recruitment.
  • Developing and fine-tuning targeted products and services to various member market segments.


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5. Legal and Regulatory Horizons

Objectives

The public affairs team at EVCA is planning for a busy 2008. Building on lessons learned, EVCA has widened the scope of issues in which the industry is directly, or tangentially, involved. Monitoring topics, debates and the people involved across Europe and in Brussels took up a good deal of time at EVCA in 2007; the effort will start to pay visible dividends in 2008.

EVCA is planning to continue and expand engagement with lawmakers and other stakeholders in Brussels and across the EU and to meet the demands of the shift of power from the Commission to the Parliament in Europe.

A tool which EVCA has developed to inform and influence is the Benchmark Study, which has been used over time to highlight the disparities in operating environments for private equity across Europe. With the context of the European Commission’s plan to increase Europe’s economic competitiveness, the report has taken on a new significance. A range of activities and initiatives, including a conference for policymakers at the Eur

Actions

  • Continuing EVCA’s proactive engagement in public and regulatory affairs, particularly through participation in working groups or interacting regularly with its large network of policymakers.
  • Increasing engagement of GP members in the discussion of – and reaction to – critical industry-related policy issues.
  • Reacting robustly to policy proposals that may adversely affect, directly or indirectly, any aspect of private equity and venture capital.
  • Raising the awareness of policymakers and politicians on key policy issues and improving their understanding of private equity and its contribution to economic growth and job creation.
  • Continuing to identify and build upon the necessary relationships with policymakers and other relevant contacts at various levels.
  • Launching proposals for further improvement of the legal and fiscal environment for venture capital and buyouts.


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