Jun 2, 2021

5 Reasons to Join A Private Equity Board

5 Reasons to Join a Private Equity Board

At Lancor, we frequently help private equity firms fill Board seats with a diverse and innovative group of executives. With the rise of private equity backed businesses, there are even more opportunities for executives to join Boards and deepen their professional experiences. Surprisingly, many executives aren’t aware of the opportunity for this type of role. Or that more than ¾ of employers allow their employees to join an outside Board. Independent Board seats are fantastic roles with a number of benefits beyond the economic perks. From expanding your skillset to career expansion–here are 5 reasons you should consider joining a private equity Board:

  1. Additional equity and income 

The ability to earn an additional revenue stream while retaining current employment is reason enough for many executives. Some of the most compelling aggregate compensation is available to Board members. Many P.E. firms offer equity plus as stipend, as part of a compensation package. Therefore, there is quite a bit of upside if the company does well. With this model, Board members tend to be even more personally invested in leading the business towards profitability and success. 

  1. An expanded network

When a P.E.firm acquires an asset, the first step is often to change leadership and create a new Board of Directors. With the knowledge that diversity and having a wider range of opinions drives better returns, most firms are invested in hiring a varied group for Board roles. For the Board Member, this means a chance to work with a new group of executives and expand their network and contacts.  Often, P.E. firms invest across a wide variety of industries and they like to bring all their teams together in person and virtually. These are great opportunities to build life-long friendships, both personal and professional.

  1. A more impressive résumé  

Ultimately, all work experiences help you inform your career path and current role. A Board seat can be the perfect fit for those wanting to beef up their leadership skills and expand their capabilities. Board Members oversee and direct many facets of a business, from marketing to operations to sales. While you may be brought in for your specific experience, you will be exposed to other sections of the business and gain valuable insight that only adds to your skillset.  If you spike in Marketing, you will learn more about Finance.  If you are a strong procurement professional and this is a key area of improvement, you may learn more about asset light logistics.

  1. Crossover experience

A private equity Board seat can be a bridge to a new industry or sector. For example, if you have cyber security experience in hospitality, but serve on the Board of a tech firm, it could be an introduction to a career in tech more broadly. Or you might want to focus within different sub sectors of business services. These are skills that you can pick up that will allow you to expand your professional career.

  1. A team experience

With a limited time to hold onto a company and drive returns, it takes a collaborative approach to leadership to successfully lead a business. If you are driven, but humble enough to be a team player, a private equity Board position can be the perfect fit. If you possess intellectual curiosity and humility to learn with every role, those are qualities that will help you over-deliver. While some executives don’t always have the mindset to be collaborative, a Board role puts you squarely in that position. With everyone chipping in their capabilities it can be an extremely fulfilling and rewarding experience.