Good analogy. This arrangement has been implicitly consented to by the fund investors, so I think it is generally quite fine. Iām more willing to find an implied COI waiver in this context than in most charity contexts for two reasons:
First, private equity fund investors are generally quite sophisticated, and they both understand and desire that someone from the fund sit on the portfolio-company board. I assume that is also true in the Claire example, but there are many charity-related examples where that is not the case.
Second, the aims of the various entities tend to be more necessarily aligned in the for-profit example: everyone wants to make money. Although they might disagree on the best path to get there, money is universally quantifiable in a way that charitable impact is not.
Good analogy. This arrangement has been implicitly consented to by the fund investors, so I think it is generally quite fine. Iām more willing to find an implied COI waiver in this context than in most charity contexts for two reasons:
First, private equity fund investors are generally quite sophisticated, and they both understand and desire that someone from the fund sit on the portfolio-company board. I assume that is also true in the Claire example, but there are many charity-related examples where that is not the case.
Second, the aims of the various entities tend to be more necessarily aligned in the for-profit example: everyone wants to make money. Although they might disagree on the best path to get there, money is universally quantifiable in a way that charitable impact is not.