The right choice

Simon Witney is a busy man. Not only is he part of the international funds and investment management group at law firm Debevoise, he also sits on a couple of industry councils, teaches company law at the London School of Economics, and is working towards a doctorate. Nonetheless, he took time out to talk about his sustained enthusiasm for private equity, how a better understanding of corporate governance could improve portfolio company performance and his work with the British Private Equity and Venture Capital Association.

Q What attracted you to the industry, as a lawyer?

SW: After qualifying as a solicitor in 1994, I went to do an MBA at graduate business school INSEAD in France. I became interested in entrepreneurship and venture capital, and I took several courses on it during the MBA program. It was an exciting, high-growth area, and I felt like it was going to be the future.

INSEAD was very international, and lots of our teachers had a background in US venture capital. But thesector was also very vibrant in the UK and, as I learned more about it, I found it really exciting. The prospect of working with entrepreneurs was very appealing. When I left INSEAD, I decided to become a private equity lawyer at a firm which specialised in it.

Q Would the industry still appeal if you were qualifying now?

SW: If I had my time again, I’d still want to join the private equity industry. I still find it an energizing and attractive sector; I really believe in the business model as a way to finance and run companies. For certain types of company, it’s a powerful model and has helped to build countless world-beating companies.

Q Can you tell us more about the work you do with industry associations?
SW: I’ve been involved with the British Private Equity and Venture Capital Association for many years and now sit on its council, which is responsible for oversight and strategy. I also sit on Invest Europe’s professional standards committee, which is responsible for the Professional Standards Handbook, and that has a close connection with what I have done professionally.

The two associations work closely together, but tend to focus on different legal and regulatory issues. The BVCA is, of course, leading the discussions with the UK government on its response to Brexit and the impact on private equity and venture capital here in Britain.

Q As if that wasn’t enough to keep you busy, you’re also working on a PhD…
SW: I’m finishing up a three and half year doctoral program at London School of Economics, working with 12 UK-based PE firms and looking at the corporate governance frameworks in their portfolio companies. I’ve looked at the balance of power within the board, dynamics between executive and non-executive directors, private equity and non-private equity firm appointed directors, and how publicly listed companies can learn from private equity and vice versa.

Alongside that, I’ve been teaching company law at the London School of Economics, and am hoping to continue that in the coming years with a course on private equity law. I’m also planning to turn my research into a book and to undertake further research in the private equity sector.

I do think corporate governance is understudied in private equity. There’s been little research looking at how private equity corporate governance structures contribute to portfolio companies’ performance. My research is qualitative, and it’s very difficult to do a quantitative study as the factors are bespoke to each firm, but I hope there are important lessons for firms and for regulators in my research findings. ?