Does anyone have experience using expert networks (eg GLG) ?

investor profile

October 05, 2019

by an investor from Dartmouth College in Boston, MA, USA

I am evaluating an investment in a company that makes access to expert networks more standard and affordable using technology. I am wondering to what extent searchers may be good consumers of expert networks services.


In any case, I’d love to hear more from you guys on this topic. And any other bright ideas on what is making the search more effective.

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commentor profile
Reply by a professional
from University of Pennsylvania in New York, NY, USA
On one count, I am a GLG resource who has taken a number of calls through that platform. More pertinently, my firm (I am a co-founder/partner) offers an expert network - primarily comprise of alumni (both school and corporate) that we provide to our clients in multiple forms. Note that it is not a tech-enabled, client-searchable platform. In one format, we leverage our expert network to create "expert panels" for each diligence or strategy assignment where the client hires us to do a discrete piece of work in a particular sector or niche. Our internal analyst teams conduct interviews of experts on the panel (sometimes we have the client sit in on these) and the outputs are packaged into our reports to the client. Conversely, if the client has its own resources (perhaps an operations team, operating partners, or the investment partners themselves) who will do the main body of work but simply need a few hours of subject matter expertise, we, like GLG, Coleman, or others, can provide SMEs from our network on an hourly basis for calls and/or site visits and other constructs. Our pricing for both formats compensates our experts - who are not exclusive - at market rates but charges them to clients at rates that are typically significantly less than the GLG types. We have even sometimes priced work to accommodate the needs of independent sponsors who for the most part could never afford name brand firms with our capabilities. Moreover, there is no need for an annual contract. Certainly anyone can use their own LinkedIn or other social media to find experts, but the affinities we possess allow us to have a highly responsive pool and to assemble very specific niche expertise quickly. In fact, some large and well-known PE groups have turned to us to deliver assignments stating that they "asked the name brand consultancies - Bain, BCG, McKinsey, LEK - for help, but they could not deliver expertise in [niche]". Usually, we can assemble a team and expert panel within 48 hours. Even when asked to simply supply experts for a few calls or a site visit, we are almost always able to supply top notch, CxO/Board level talent with precise expertise at an untouchable price relative to GLG, etc.
commentor profile
Reply by a searcher
in Portland, OR, USA
^redacted‌ I've used expert networks/consultancies as both an expert and to do market research. In my experience as an expert on these networks, I've found that GLG takes a significant amount of time and effort to sign up/apply for an opportunity. Their platform is fairly mature, which has streamlined expert profile creation, project creation, expert surveys, interviews, and expert/project matching. As an expert, I believe the core benefit of GLG is that opportunities are sent to me as an expert and I can pick which one I take. However, the cost/benefit can be unbalanced since applying to those opportunities can be time consuming, even though I will ultimately be compensated for my time.

I've also used consultancies to help do research (McKinsey) and have done several expert calls with others (LEK). As an expert, the core benefit of a purely consultative approach is there is virtually no effort for me to accept and be interviewed, and ultimately compensated for my time. So the cost/benefit is skewed in my favor. As a director using these consultancies to do market research, I find consultancies find the best experts and are very high touch, but at a much higher cost.

Ultimately, these expert networks adhere to marketplace dynamics as their core value prop is efficiently matching expert supply to project demand. If the opportunity you are looking at (or you) can reduce barriers to entry for experts and/or reduce cost for projects, then you might have something compelling.
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