Typical Structure for Operating Partner/Advisor for small PE firm

March 02, 2025
by a searcher in Montreal, QC, Canada
Hello fellow SFunders,
I’m trying to learn more about the relationship between operating partners/senior advisors and small PE firms. If you’ve had any experience with this or come across any helpful insights, I’d love to hear your thoughts!
A few specific questions I’m curious about:
- How is their involvement typically structured? Do sponsors reach out as needed, or are there more formal quarterly meetings?
- How does compensation usually work, and what are the market rates?
- Are all senior advisors compensated? I’ve seen very small firms with just a couple of advisors and wonder how they afford to pay them meaningfully.
- Do senior advisors typically invest as LPs in the fund?
- What do you think is the ideal number of operating partners/advisors? Some firms have 10+, while others stick to just a few.
Looking forward to hearing your experiences and insights!
Thanks in advance.
from The University of Texas at Austin in Dallas, TX, USA