Why Do Investment Firms Need Expert Networks?

  • Anuj Saxena

    Anuj Saxena, a Founding member of Knowledge Ridge, currently spearheads Global Strategic Partnerships and is a renowned thought leader in the Expert Network domain.

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<p><img src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Banner.jpg" alt="Why Do Investment Firms Need Expert Networks?"></p><p style="text-align: justify;">Investment firms need expert networks to access specialized insights and expertise, enabling more informed investment decisions and due diligence in complex markets.</p><div style="text-align: left; margin-bottom: 10px;"><a class="btngs" style="padding: 8px; color: white !important;" href="https://www.knowledgeridge.com/Knowledge-Ridge-Contact" target="_blank" rel="noopener">Know More</a></div><p class="bbox" style="text-align: justify;"><em>By&nbsp;connecting businesses with subject matter experts&nbsp;in various fields,</em> <a href="https://www.knowledgeridge.com/blog/what-are-expert-networks-understanding-their-importance" target="_blank" rel="noopener noreferrer"><em>expert network firms</em></a> <em>provide investment firms with a competitive advantage in the form of industry-specific market intelligence.</em></p><p style="text-align: justify;">Whether you represent a private equity firm, asset management company, or investment management strategist, making significant investments in business sectors where you have little or no prior experience and in-house expertise can be daunting.</p><p style="text-align: justify;">This is where <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/Blog/The-Value-of-Choosing-the-Right-Expert-Network" target="_blank" rel="noopener noreferrer">choosing the right expert network firm</a> comes in &ndash; they provide access to relevant resources who are proficient in assessing the viability of planned investments.</p><h2 style="font-size: 14pt;">Expert Networks and Investing</h2><p style="text-align: justify;">Though the phrase was first used in 1997,&nbsp;expert networks&nbsp;gained popularity around 2000. Over the years, the <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/blog/what-are-expert-networks-understanding-their-importance" target="_blank" rel="noopener noreferrer">expert network industry</a> has become more streamlined and regularized. Since 2009, when some spurious investments were made by clients based on insider tips, regulations have tightened around the types of information that experts or subject matter experts (SMEs) are authorized to provide to client firms. The permitted uses of the information received are also strictly regularized.</p><p style="text-align: justify;">Suppose an SME is working with a publicly traded company. In that case, the <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/Blog/Expert-Networks-Understanding-the-Industry-Importance-and-Its-Functioning" target="_blank" rel="noopener noreferrer">Expert Network</a> will avoid using that SME for their client, whose interest is in that publicly traded company. This is to prevent compliance issues where the SME may inadvertently or deliberately disclose insider information to the clients (users of the expert network).</p><h2 style="font-size: 14pt;">Why do Investment Firms Need Expert Networks?</h2><p style="text-align: justify;">Expert networks provide a one-stop shop for <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/expert-network-clients/investment-management" target="_blank" rel="noopener">investment management firms</a> looking for industry-specific knowledge and experience that can be leveraged towards guiding the direction of investment strategies, helping with <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/Blog/A-Balanced-Approach-to-Business-Research-Qualitative-Vs-Quantitative-Research" target="_blank" rel="noopener noreferrer">qualitative and quantitative decision-making</a>, accurately projecting business outcomes, and streamlining processes.</p><p style="text-align: justify;">As a result, most 'use cases' for Expert Networks in the investment business are about analyzing the suitability, opportunities, and risks associated with specific investments. This can be for Private Equity, Public Equity, or Credit investment and is typically reserved for long-term investors who conduct extensive fundamental research rather than short-term investors.</p><p style="text-align: justify;">Another important application, particularly for management consultants, is acquisition due diligence.&nbsp;<em>Expert Networks have become fundamental to due diligence work</em>. The subject matter experts provide comprehensive and in-depth insights, which are especially useful for forward-looking time assessments, like estimating future revenues and cash flows.</p><p><img src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Image-2.jpg" alt="Expert Network for Investment Management Firms"></p><h2 style="font-size: 14pt;">In-demand Expertise for Investment Firms</h2><p style="text-align: justify;">Asset and <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/expert-network-clients/investment-management" target="_blank" rel="noopener">investment management firms</a>, <a href="https://www.knowledgeridge.com/expert-network-clients/investment-management/hedge-funds" target="_blank" rel="noopener">hedge funds</a>, and <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/expert-network-clients/investment-management/private-equity" target="_blank" rel="noopener">private equity</a> firms rely on <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/expert-network-services" target="_blank" rel="noopener">expert network services</a> to conduct <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/blog/private-equity-market-research-a-guide-to-informed-investment-decisions" target="_blank" rel="noopener">market research and due diligence</a> to make informed investment decisions in various sectors.</p><p style="text-align: justify;">With advice from highly experienced experts, businesses can take the guesswork out of strategic decisions, speed up various business processes, create robust <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/blog/international-market-entry-strategy" target="_blank" rel="noopener">go-to-market strategies</a>, and gain perspectives they may not have considered.</p><p style="text-align: justify;">Expert insights can also guide organizations towards efficient brand rebuilding or expansion efforts, considering and analyzing various dynamic market factors.</p><p class="bbox" style="text-align: justify;"><em>A competent expert network firm can hand-pick and custom-vet relevant experts from around the world who are ideally suited to the expertise you require.</em></p><h2 style="font-size: 14pt;">How Do Investors Use Expert Networks &ndash; A Case Study</h2><p style="text-align: justify;"><a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/case-studies/post-merger-scenarios-global-insurance-giants" target="_blank" rel="noopener">A privately owned global investment management firm</a> with approximately $70 billion in assets across all major asset classes needed expert advice on the impact of a recent merger between two major global insurance providers.</p><p style="text-align: justify;">Knowledge Ridge chose relevant experts from the United States and Europe who had recently worked for the two insurance conglomerates and other insurance industry experts. They were meticulously custom-vetted through <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/expert-network-services/expert-calls" target="_blank" rel="noopener">phone interviews</a> to determine their direct involvement and were chosen based on their expertise and experience in providing a deep dive into the impact of the merger.</p><p style="text-align: justify;">As a result, the client gained first-hand perspectives and actionable insights into the merger of the two large insurance companies under consideration and the newly formed entity's insurance business.</p><h2 style="font-size: 14pt;">How Do Clients Communicate with Experts?</h2><p style="text-align: justify;">Through an expert network firm, <a style="text-decoration: underline !important; color: #16acef!important;" href="https://knowledgeridge.com/expert-network-services/expert-surveys" target="_blank" rel="noopener">the client can select their preferred method of communication</a> with experts for the most prompt, effective, and actionable intelligence:</p><ul><li style="list-style-type: none;"><ul><li><p>They can speak one-on-one with relevant experts or participate in multi-participant <a href="https://knowledgeridge.com/Expert-Network-Services/Expert-Calls" target="_blank" rel="noopener noreferrer">phone consultations</a></p></li><li><p>They could initiate <a href="https://knowledgeridge.com/Expert-Network-Services/Expert-Surveys" target="_blank" rel="noopener noreferrer">targeted or customized surveys</a> in which an expert panel will provide tailor-made responses to key questions</p></li><li><p>They could also <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/Expert-Network-Services/Term-Engagements" target="_blank" rel="noopener noreferrer">engage experts for longer-term assignments</a> through workshops, technical IDIs, and field visits.</p></li></ul></li></ul><p style="text-align: justify;">You must ensure that the expert network firm under consideration has a <a href="https://knowledgeridge.com/Expert-Network-Compliance" target="_blank" rel="noopener noreferrer">robust compliance framework</a> that can be customized to your specific needs.</p><h2 style="font-size: 14pt;">The Knowledge Ridge Advantage</h2><p style="text-align: justify;">Looking for accurate, up-to-date industry knowledge to help you make strategic investment decisions to grow your portfolio? <a href="https://www.knowledgeridge.com/About-Knowledge-Ridge-Expert-Network" target="_blank" rel="noopener noreferrer">Knowledge Ridge</a> is an expert network firm with a strong presence in APAC, EMEA, and the Americas and access to experts in 80+ countries across 158 sub-industries.</p><p style="text-align: justify;">Knowledge Ridge assists clients in navigating an ever-changing global business environment by providing timely access to relevant and actionable industry know-how. Unlike traditional expert networks that rely solely on databases, our internal corporate strategy team employs a comprehensive approach, searching high and low for the best possible solutions. We are honored to serve investment companies, Fortune Global 500 companies, leading strategy consulting firms, and large institutional investors.</p><p style="text-align: justify class=;"><em>Knowledge Ridge has emerged as the expert network of choice for clients across industry sectors and geographies. We have:</em></p><ul><li style="list-style-type: none;"><ul><li><p><em>An industry-leading <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/blog/driving-success-with-high-expert-acceptance-rate-and-engagement-success-rate" target="_blank" rel="noopener">Expert Acceptance Rate</a> of 64% (experts sent vs accepted)</em></p></li><li><p><em>An overall <a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/blog/driving-success-with-high-expert-acceptance-rate-and-engagement-success-rate" target="_blank" rel="noopener">Engagement Success Rate</a> of 99% (experts engaged successfully)</em></p></li><li><p><em>A Client Retention Rate of 98%</em></p></li></ul></li></ul><p style="text-align: justify;"><a style="text-decoration: underline !important; color: #16acef!important;" href="https://www.knowledgeridge.com/Knowledge-Ridge-Contact" target="_blank" rel="noopener noreferrer">Reach out</a> to gain relevant insights from seasoned industry professionals who can guide your business toward success.</p><p><a class="btngs" style="padding: 8px; color: white !important; text-decoration: none !important;" href="https://www.knowledgeridge.com/Knowledge-Ridge-Contact" target="_blank" rel="noopener"> Explore Expert Insights Now</a></p><h3><strong>Frequently Asked Questions</strong></h3><h2 style="font-size: 14pt;"><span style="font-size: 16px;">Who Uses Expert Networks?</span></h2><p>Expert network firms cater to a diverse array of clients seeking specialized industry knowledge and insights for various strategic purposes. These clients encompass entrepreneurs engaged in market analysis to gain a competitive advantage, marketing teams seeking expert guidance to refine their campaigns and strategies, and private equity firms conducting due diligence on potential investments or market trends that could affect their portfolios.</p><p>Investment management firms, venture capitalists, and hedge funds also turn to expert networks to explore uncharted investment opportunities. Consulting companies rely on expert networks to gain an in-depth understanding of specific industries, markets, or products, enabling them to provide precise solutions to their clients.</p><p>Similarly, IT consulting firms leverage expert networks to access innovative advice on approaches to developing new tech products, fostering innovation and competitiveness in the tech sector.</p><h2 style="font-size: 14pt;"><span style="font-size: 16px;">What Type of Information Do Investment Firms Seek from Expert Networks?</span></h2><p style="text-align: justify;">Investment management firms seek quick and accurate answers to challenging industry-specific questions. Experts can provide perspectives and actionable insights with years of industry experience to help organizations identify sound investments and steer clear of loss-making endeavors.</p>

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