As an experienced industry professional, you have likely been approached to become an advisor at some point in your career. However, with the daily demands of your primary occupation, sacrificing your scarce time to advise may not be an obvious choice. While not all advising engagements are created equal, there can be numerous benefits to advising private equity investors:
- Expand Your Network
One of the more obvious benefits of being an advisor is the opportunity to expand your network. As an experienced professional you know the value of forming relationships both within your industry and outside of it. You never know when a connection you make through advising may be helpful down the road. - Share Your Expertise
When advising private equity investors considering a deal, your industry expertise can be the difference between them missing a great deal or making a disastrous investment decision. Not everyone can have deep knowledge in all areas, which is why experts are needed. It’s rewarding to share your hard-earned industry insight to enable private equity funds to make the best decisions. - Potential to Land a Board Seat
When a private equity fund closes a deal, they’ll often look to fill a board seat position with someone experienced in the new acquisition they’ve made. If you have just advised them on the deal, it’s likely you will be top-of-mind when they begin the search to fill a board seat. - Potential to Become an Operating Partner
Many private equity funds have operating partner roles. These roles are used to drive value and be a catalyst for change in the recently acquired company. When looking to fill an operating partner position, private equity funds will likely first tap their existing network, of which you are a part as soon as you advise them. - Resume Differentiator
In a competitive job market, experience advising private equity funds is one more item that can help differentiate your resume from others’. It can catch an executive headhunter’s eye and spark interesting discussion when interviewing for a new role. - Additional Income
As a potentially well-compensated professional, the primary motivation to be an advisor would likely not be the pay. However, with hourly rates in the range of $300-$500, it does not hurt to make some extra income on the side to contribute towards your personal financial goals.
As far as advising goes, there are many companies with whom one can sign up. Some companies charge their advisors to be a member while simultaneously putting the onus on the advisor to market themselves well enough to be contacted.
With InquireOf, there is never any cost to join as an advisor. You set your hourly rate, decide which calls you want to take, and schedule them at your convenience. With the many benefits of being an advisor, it would be a missed opportunity to not make yourself available to private equity investors needing industry expertise.
