A Focus on Independence & Accountability
In developing the governance structure for the Fund, Quantum has fully considered the governance guidelines as outlined by Australian Investment Council in their publication “Code of Private Equity Governance”. In addition, we have been mindful of the unique aspects of the investments in the Fund and how they differ to a traditional private equity or venture capital fund including:
- The likelihood that, whilst we will have a portfolio of investments, unlike a traditional PE or VC portfolio, each of the distinct project teams working on each of the investments will be co-located in a single premises;
- That Quantum will have full management control over the progress and performance of each portfolio investment undertaken by the Fund;
- The specialised nature of the investment portfolio and need for independent governance with appropriate expertise; and
- The co-ordinated management oversight by Quantum of performance of each of the investments (i.e. the ability to “walk the building” on a daily basis and closely oversight each of the project teams).
QMIF will operate with a governance structure that demonstrates audit traceability of robustness coupled with clear separation (independence) across:
- Investment decision making;
- Accountability; and
- Monitoring & reporting.
An independent structure with full access to global technical expertise
Quantum’s governance structure for the Quantum Medical Innovation Fund will comprise:
- QIFM Board - a Board comprising a majority of independent directors with responsibility for oversight of performance of the asset manager,oversight of performance of each of the portfolio investments and approval of funding for each investment. Given the co-located nature of the portfolio investments, it is not proposed that there be separate individual portfolio level Boards except as may be requiredfor statutory purposes and for dealing with joint venture interests;
- The expert Medical Advisory Panel -reporting to QIFM Board and working closely with the Investment Committee, this panel is seen as a crucial governance role within the Fund. This independent panel provides the Board and Investment Committee ready access to appropriately qualified global experts that can assist in the technical evaluation of new proposed investments and also of performance to the achievement of predetermined milestones of existing portfolio investments; and
- The Investment Committee - a subcommittee reporting to QIFM Board, this Committee will be primarily responsible for assessing and recommending new or increased portfolio investments.
In addition, Quantum would propose that the Asset Manager documentation under which Quantum operates would also adopt as appropriate the principles contained within the AVCAL Governance Code.