Acertitude: What's Next for Private Equity Talent Management?
As the private equity industry is forced to seek new avenues of value creation beyond traditional methods like financial engineering and cash management, operating models have matured. Today, talent management is understood and prioritized to a much greater extent.
Notably, an EY survey revealed that over 80% of private equity firms consider hiring and onboarding talent as one of their top three talent management priorities. Additionally, 43% of private investors have increased their scrutiny of talent management programs during the due diligence stage. These insights are further reinforced by a McKinsey survey, which found that 94% of general partners say that PE portfolio company leaders contribute an average of 53% toward investment returns.
While this may not come as a surprise, it underscores the ongoing importance of talent management to the industry.
Geoffrey Votta, an Acertitude partner, was honored to participate in a panel on the topic alongside an esteemed group of operating partners, where they shared our insights and best practices. The findings from the conversation centered around three pillars:
- Brand Optimization
- Proactive Pre-Deal Assessment
- Accelerated Executive Recruitment