— In this panel, executive search consultants, leadership advisors, and human capital leaders discuss the latest trends shaping talent acquisition in private equity —
In this thought-provoking live panel discussion moderated by Ashley Day, partner at ON Partners, leaders in the private equity sector explored the evolving PE talent landscape, sharing their expertise on recruitment challenges, leadership archetypes, and compensation trends.
Panelists included Crosby Baker, Head of PortCo Talent at H.I.G. Capital, Ashley Aronson, Director of Talent Acquisition at Gryphon Investors, and Michelle Bush, Principal Consultant at Leadership Development Worldwide.
The panel was inspired by recent findings in the 2024 Private Equity Talent Trends Report featured in major media outlets including Fast Company and Markets Insider. Download the report today!
Watch the full panel discussion available on our YouTube and Vimeo channels.
Don’t have time to watch the full panel discussion? Here’s a quick summary.
This recap captures the top insights from the conversation, along with key quotes from the panelists:
Navigating a Tight Talent Market
The PE talent market remains constrained as deal flow accelerates. Crosby Baker highlighted the ongoing struggle: “There’s still just a backlog of people trying to get to the exit. The talent market continues to be tight.” Ashley Aronson agreed, emphasizing the creativity required to attract top talent, including innovative compensation packages such as exit bonuses and retention incentives.
The Ideal Leadership Archetype
The panelists discussed the shifting expectations for PE leaders. According to Ashley Aronson, today’s environment demands “warts-and-all” leaders who are “results-driven, adaptable, and ready to roll up their sleeves.” Michelle Bush added, “The conversation is switching. It’s about what we can support and develop around that leader to make them successful.”
The Step-Up Debate
Despite the demand for experienced leaders, the panel explored the potential of step-up candidates. Ashley Day noted, “There’s been a clear reluctance to explore step-up candidates, particularly for CFO roles. But with talent scarcity, finding the right fit becomes more critical.” Aronson acknowledged the challenges, adding, “Sometimes step-up candidates bring hunger and energy that seasoned leaders may lack.”
Compensation Trends Shaping the Market
Compensation emerged as a crucial topic. Ashley Day shared data revealing that cash compensation in PE-backed companies increased nearly 8% compared to less significant growth in public and non-PE private companies. Crosby Baker noted, “Every private equity firm is feeling the pressure. Compensation expectations are rising, and we’re seeing more scrutiny around equity packages.”
Leveraging Interim Talent
Interim executives are gaining traction as a strategic solution. “We’re seeing more reliance on interim CFOs to stabilize operations,” said Day. This trend not only addresses immediate challenges but also paves the way for long-term leadership transitions.
Evolving Expectations Around Location and Hybrid Work
Michelle Bush discussed the shift back to in-person work, noting, “Private equity historically had high expectations for relocation. Now, we’re seeing more candidates prioritize flexibility and local opportunities.” Crosby Baker added, “Being clear about hybrid arrangements upfront is key to avoiding misunderstandings later.”
The Value of References
The panelists underscored the importance of thorough referencing to mitigate risks. “We’re leveraging backchannel references and sophisticated assessment tools to ensure we understand candidates from every angle,” said Baker. Bush highlighted the significance of context: “References should focus on how candidates operated within specific environments to predict future success.”
Want more PE Talent insights? Download the 2024 Private Equity Talent Trends Report today!
