Advisor fees in PE?
Curious what senior advisors such as former CEOs that work with PE firms make? Say they consult on current deal flow, and then participate in a deal when it goes live. What would be a fee for a top MM firm? Would they get a % of the success fee? Equity? If so what could an advisor expect for say a $100MM deal that goes through?
Any other thoughts on how these folks do $ wise?
Thanks
At a MF PE firm and generally for any advisors they are placed on retainer and/or hourly/monthly fees.
If they can be a potential operating partner (i.e., chair of the board) post-acquisition they'll get a % of management options which can be very lucrative
Thanks! Any general comp examples that you have seen for this, as is what % of management options?
We pay advisors in the ballpark $300+/hr range for DD consultation and if they're on the BoD, they'll have some portion of options. Have seen it sized up to ~$1M DAW equivalent at target performance, but I do more MM deals.
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