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• Case | HBS Case Collection | August 2017 (Revised July 2018)

  Ardian: Portfolio Company Governance

  Lynn S. Paine, Emer Moloney and Tonia Labruyere

  Leaders of the mid-cap buyout group at Ardian, the Paris-based private equity firm led by Dominique Senequier, have been asked to review and assess the governance model the firm uses for majority-owned companies in its portfolio. The case describes the governance model and then shows how it has worked in practice at two companies: Italy’s orthopedic implant maker Lima Corporate and French chemical company Novacap. For each company, the case describes how Ardian decided on the investment and established a board of directors and details the deliberations around some of the critical decisions made by each board during Ardian’s tenure as majority shareholder. Through the two examples of Lima and Novacap, the case invites students to evaluate Ardian’s approach to corporate governance in its portfolio companies and to recommend possible changes or improvements.

  Keywords: Corporate Governance; Strategy; Decision Making; Private Equity;

  Citation:

  Paine, Lynn S., Emer Moloney, and Tonia Labruyere. "Ardian: Portfolio Company Governance." Harvard Business School Case 318-017, August 2017. (Revised July 2018.)  View Details

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• Case | HBS Case Collection | March 2018

  African Bank Investments Limited (A)

  Lynn S. Paine and Will Hurwitz

  Less than a year after joining the board of African Bank Investments Limited (ABIL), the newest director finds himself in difficult discussions with other directors about removing the struggling company’s CEO. The case is set in South Africa in mid-2014 as shares in ABIL, which traded on the Johannesburg Stock Exchange, are declining precipitously. The case describes ABIL’s origins and evolution, including the acquisition and growth of its wholly owned subsidiary African Bank, a provider of unsecured loans to help individuals pay for expenses such as vehicle repairs, home renovations, funeral costs, medical bills, and education. As ABIL’s profits rose and share price soared, it became the darling of analysts. However, when the South African economy turned sour, customers started defaulting on their loans, and ABIL and African Bank began to struggle. As ABIL’s stock price dropped, the management team faced difficult questions about the company’s lending practices, risk management processes, and plans to turn the business around. By 2014, the situation was grim, and pressure mounted from shareholders and market regulators for the board to take action. The case details the history of unsecured lending in South Africa, describes the regulatory, social, and legal contexts for the company and its business model, and explores the company’s unique corporate structure and executive and director dynamics.

  Keywords: Ethics; Personal Finance; Corporate Accountability; Governing and Advisory Boards; Corporate Governance; Crisis Management; Insurance; Leadership; Management; Risk Management; Banking Industry; Financial Services Industry; Insurance Industry; Africa; South Africa;

  Citation:

  Paine, Lynn S., and Will Hurwitz. "African Bank Investments Limited (A)." Harvard Business School Case 318-095, March 2018.  View Details

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• Supplement | HBS Case Collection | March 2018

  African Bank Investments Limited (B)

  Lynn S. Paine and Will Hurwitz

  Less than a year after joining the board of African Bank Investments Limited (ABIL), the newest director finds himself in difficult discussions with other directors about removing the struggling company’s CEO. The case is set in South Africa in mid-2014 as shares in ABIL, which traded on the Johannesburg Stock Exchange, are declining precipitously. The case describes ABIL’s origins and evolution, including the acquisition and growth of its wholly owned subsidiary African Bank, a provider of unsecured loans to help individuals pay for expenses such as vehicle repairs, home renovations, funeral costs, medical bills, and education. As ABIL’s profits rose and share price soared, it became the darling of analysts. However, when the South African economy turned sour, customers started defaulting on their loans, and ABIL and African Bank began to struggle. As ABIL’s stock price dropped, the management team faced difficult questions about the company’s lending practices, risk management processes, and plans to turn the business around. By 2014, the situation was grim, and pressure mounted from shareholders and market regulators for the board to take action. The case details the history of unsecured lending in South Africa, describes the regulatory, social, and legal contexts for the company and its business model, and explores the company’s unique corporate structure and executive and director dynamics.

  Keywords: Ethics; Personal Finance; Corporate Accountability; Governing and Advisory Boards; Corporate Governance; Crisis Management; Insurance; Leadership; Management; Risk Management; Banking Industry; Financial Services Industry; Insurance Industry; Africa; South Africa;

  Citation:

  Paine, Lynn S., and Will Hurwitz. "African Bank Investments Limited (B)." Harvard Business School Supplement 318-096, March 2018.  View Details

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