PE fundraising is on track to surpass $330 billion in 2021, an all-time high; overall deal value for carve-outs this year could reach the highest levels ever recorded, so it is no wonder that private equity firms today are paying more attention than ever to having the right people in senior roles at their portfolio companies and developing their executive leadership teams to drive growth.
Pre-pandemic management at Private Equity firms often relied on their personal network of connections to fill open positions. Understandably, it feels more comfortable to hire a person they know or have been referred to. However, at a time when it’s never been more important to seize every opportunity for accelerated business growth, PE firms can’t risk hiring based on comfort. Instead, potential candidates should be chosen based on a proven track record of transformational leadership and power skills, including dedication, passion, and emotional intelligence.
Continued portfolio expansion is occurring as competition for deals remains high. In turn, this stretches some PE firms outside of their knowledge zones which amplifies the importance of building executive leadership teams with the right experience.
Challenges in Private Equity Recruiting
As the entire market explodes with new business opportunities at once, fierce and relentless competition for the best talent is occurring. Couple that with a shrinking pool of experienced executives due to retirement, a demand for more specialization across executive functions, and new drivers that emphasize culture, diversity, inclusion and engagement, has caused the talent pool to become even smaller.
Strong executives are being bombarded with recruiter calls. Candidates who are open to exploring new opportunities are often presented with multiple offers. Therefore, momentum and speed of decision making are crucial for attracting the best talent.
The most sought-after candidates need to be approached strategically, thoughtfully and skillfully. Taking a professional approach demonstrates to a candidate, “We understand who you are and your important motivations.” As a result, even the most passive candidates become engaged because they can envision the next, best step in their career.
How an Executive Search Firm Can Help
The right executive search firm is well versed in the art and science of recruiting and acquiring top leadership talent for PE-owned and VC-backed companies. Torch Group’s experience in executive search across diverse industries, along with our competency-based behavioral interviewing protocols and comprehensive Signature Search Process™, allows us to find and reliably evaluate leaders who understand the operating efficiencies, innovative management, and cultural transformation that are the hallmarks of effective PE company management. Our team takes a consultative approach to recruiting and can help evaluate and design your company’s hiring process from beginning to end, offering advice on interviewing techniques, onboarding, compensation, equity participation, benefits, cultural fluency and more.
To learn about our Signature Search Process™ and how we partner with your team to evaluate and place candidates with mission-critical leadership skills; please contact Ron Torch at rtorch@torchgroup.com or Andy Scritchfield at ascritchfield@torchgroup.com or simply complete and submit this form and let us know how we can help.