ON Partners, a specialized retained executive search firm, has launched its 2024 Private Equity Talent Trends Report. This report, created in collaboration with HR Signal, provides critical insights into the evolving landscape of talent acquisition and retention within the private equity (PE) sector.
Key Trends in Private Equity Talent Acquisition
- Operational Expertise as a Priority
- Increasing demand for operational expertise is essential for driving growth and financial turnarounds in portfolio companies.
- Cautious Hiring Landscape
- Risk-averse hiring practices are prevalent due to fluctuating valuations and elongated exits, leading to hesitation among PE firms and executive talent.
- Escalating Compensation Demands
- Candidates are now seeking higher compensation, including cash and equity, reflecting expectations set during the peak of the market in 2021.
- Heightened Fund Oversight
- PE firms are adopting a more hands-on approach in the leadership search process to ensure alignment with strategic goals.
- CEO Shifts
- There is a trend towards replacing existing leadership with experienced CEOs who can effectively navigate current market challenges.
Additional Insights
- Recent data indicates that the Chief Revenue Officer (CRO) role has seen the most significant hiring growth across all sectors. This trend emphasizes the focus on operational roles, particularly in sales and customer-centric positions.
- In contrast, hiring in finance, HR, and technology roles has either remained flat or declined, showcasing a shift in priority towards operational expertise.
The 2024 Private Equity Talent Trends Report highlights the importance of innovative talent strategies in the evolving private equity landscape. As firms strive to optimize their portfolios, understanding these trends will be crucial for making informed leadership decisions.