Private Equity Hiring Trends

Despite a shaky economic landscape, the private equity sector continues to flourish, leading to increased hiring activity for certain roles. Here are some of the biggest recruitment trends in this industry. 

Growth Equity and Value-Added Firms Generate Most Hiring Activity 

One of the biggest hiring trends in the private equity sector is the number of growth equity and value-added firms recruiting team members. In 2022, 46% percent of businesses anticipated that growth equity companies would hire employees in the next 12 months, while 40% expected value-added companies would do the same. That’s according to Preqin’s Career Paths in Private Equity report, cited by Altus Partners. 

Growth equity, in particular, has long been one of the most active subsets of private equity for recruiting employees. An average of 37% of growth equity firms have added team members each year from 2018-2022. 

Top Talent is In Demand

As always, job candidates with the most experience and expertise are more likely to find work in private equity. Employers look for applicants with knowledge of accounting, statistics, and asset management, as well as soft skills like communication and problem-solving.

The latest digital tools make it easier for private equity firms to source top talent. For example, AI tools can filter resumes based on pre-determined keywords to discover the most suitable candidates for a position. Meanwhile, the rise in remote work means employers can find team members from anywhere in the world. 

CEO and President Roles Grow

There are 14,089 private equity, investment vehicle, and hedge fund businesses in 2023 — 2.4% more than in 2022. Many of these companies, especially at the startup stage, require CEOs and presidents, increasing the number of these roles on the job market. 

Hiring new CEOs and presidents happens frequently in the private equity sector, which has historically had a high turnover rate for these positions. Fifty-eight percent of CEOs in this industry are replaced within just two years of an investment, according to a 2018 study. CEO turnover increases to 73% over the lifetime of a private equity firm’s holding of a company. 

Marketing and Sales Professionals Highly Sought-After

Eighty-two percent of private equity professionals say that having a strong brand is “very important,” while the rest view it as “somewhat important.” Marketing and sales specialists can help companies achieve this goal. Marketers, for example, can create content that resonates with potential clients and increase awareness about a private equity firm online. Sales teams, on the other hand, can generate leads, turn them into bona fide customers, and increase revenue. 

It’s no wonder, then, that the number of marketing and sales roles will grow in the future. At the time of writing, more than 770 private equity firms have open vacancies for sales-related positions on LinkedIn alone.   

Takeaway

Growth equity and value-added firms continue to generate the most hiring activity in private equity, while CEOs, presidents, and marketing and sales experts are in high demand. Across the board, private equity companies crave top talent.

Improve hiring outcomes in the private equity sector by working with a recruitment and talent strategy specialist. MRINetwork helps you find top talent for your firm, including CEOs, growth equity specialists, and marketing professionals. Follow MRINetwork to learn more about private equity hiring and other topics.