Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
I've seen many as Board Observer (i.e. non-voting), while Board Member is certainly more rare, although not completely impossible (e.g. smallish transaction to finish a fund, partners relatively busy, not so exciting company, headquarters in unpleasant city/trip, extremely big board because some family members/management would like to participate, etc.)
Seen it on very small companies EBITDA, the associate is usually a 2-3yr ib stint and all around rockstar.
Like the above stated, usually an observer seat is common. I have only ever seen senior associates with actual seats on the board - maybe once an associate that was about to be promoted, but I cannot remember if they waited for the promotion.
I'm on a non corporate board but the process is different.
Would love to learn how you got there
I don't think it's very common and you don't get paid for it if that's your thinking.
Not common, but yes. I sit on one of our portco boards. Do I add any value as a board member? No, not really. However, there are administrative reasons for including only fund employees in the fund's board seats. Also, the fund may want to collect the board fee. If you want to bring in a third-party member to the board, you can just appoint him/her as a board advisor (essentially a board member with no voting rights).
When you have to collect signatures to effect something that requires BOD consent, and you have like a 9 person board composed of a random assortment of individuals, it's a pain in the ass to collect signatures and other shit.
I'm a board observer for a few companies that I've worked on. Some of the other associates who precede me have an actual board seat on the deals they worked on, but that was when the firm and the deals were smaller.
Other than resume padding, I don't think it makes a huge difference at the junior level. Plus, being a good board member is pretty important and few Associates hav enough experience to help make an impact. If you were going to become an actual board member the deal would likely have to be small, you would have had to source it, or as mentioned above there are a few other misc reasons for appointing an Associate to the board. If you get to be a board member thats awesome if not, I wouldn't really sweat it.
Is the Board fee going to the member (i.e. associate in this case) or is this accounted into the total management fee?
There is no board fee for the members of the PE firm to serve on the board. Just the overall management fee.
I wish. I barely get to be an observer
Officia odit sint ut quasi magnam architecto aut. Dolorem veritatis modi sed ut autem. Hic praesentium voluptates ad assumenda cumque aspernatur ipsa. Aliquid provident excepturi sed.
Omnis ipsam corporis assumenda nihil temporibus cum aut. Excepturi neque molestiae id totam illum ipsam. Voluptatem qui totam rem a quas. Est veritatis aut id earum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...