by Caitlin Cassidy, Vice President

Private equity firms live and die by the speed of their decisions, and nothing is more consequential than getting the right executives in place after a merger or acquisition. And yet, according to a recent survey from AlixPartners, 67% of PE investors cite talent recruitment as their primary hurdle. Most firms simply aren't built internally to hire at the speed the business demands, and that gap quietly kills value creation before it ever gets started.

Honestly, most if not every private equity firm already knows this. What they may not fully appreciate is why they struggle to find those perfect executives right away. It’s because they simply aren’t built to run this type of hiring at speed.

PE executive recruiters will drone on and on about the need to hire people like me and that’s the only way to get talent quickly, but that doesn’t tell the full story. No matter how firms decide to execute a search – whether completely on their own or with a partner – here are the questions I’d ask to find out if you have what it takes to hire great executive talent at the speed of private equity:

Do you have the dedicated internal resources to run a fast executive search?

I’m not just talking about money, but of course that’s an important part. The real differentiator is successful firms have dedicated individuals leading this vital task. There’s clear ownership of the search strategy, process management and alignment of all stakeholders. It’s not simply a task given to an already-swamped executive who’s more focused on different initiatives they’re already claiming ownership of.

Does your network run deep enough to hire at speed?

There’s a difference between knowing the right players and having deep relationships with them. Anyone can simply pop into a LinkedIn or email inbox, but can they actually pick up the phone and chat? The quickest hires are based on trust, and trust is developed over time. The colder the outreach the longer the hiring cycle will take. This includes inbound resumes – where even for the perfect candidates on paper – will need to take the time to vet and understand the whole person.

This is what we mean when we say access to passive candidates is vital. They’re not better simply because they’re often already employed, but because efficient hiring is based on networks and relationships, and the vast majority of those individuals happen to not be actively looking for a new role.

Are you using the right tools to manage your executive search process?

Ask any Plant Manager and they’ll tell you having the right tool for the right job is paramount, so then why would someone responsible for hiring not have access to recruiting software and programs? Managing a hiring process requires more than a calendar and Zoom link. It needs talent mapping capabilities, search workflow and tracking tools and candidate scorecards combined with structured assessment methods to improve speed and quality. Not having the right tools will lead to a disorganized and disjointed process, which will reveal itself to the candidates.

Hiring with speed also needs the latest data and information. Is the compensation structure aligned with today’s market? Are there relocation barriers that need to be addressed from the get-go? If these questions aren’t proactively answered prior to launch, be prepared for an extended search.

Do you know when to bring in outside specialists to close the gaps?

If a firm cannot dedicate the internal resources to hire the most important people for value creation, looking outside the organization for help is necessary.

Bringing in individuals with immediate market access will improve search speed without sacrificing fit. They do this by helping define the role and provide objective assessment and benchmarking while tapping into their vast network of deep relationships.

However, these types of partners aren’t always recruiters. Sometimes, the people and processes are in place but the technology is lacking, so they rope in individuals with a certain set of skills to help build the digital infrastructure.

Can you build a repeatable executive hiring playbook?

The best and most efficient firms frequently have leadership needs as they continue to acquire, merge and exit companies. This means developing a hiring process built on speed and quality that can be duplicated again and again will give those firms a leg up in the fierce battle for executive PE talent.

To achieve a repeatable hiring playbook, several things need to happen:

• Develop or have access to deep sector and functional talent in advance.
• Clarify the mandates early for each role and align stakeholders before launching.
• Combine internal talent ownership with external specialist support where needed.

Conclusion: Is your firm able to continuously win the battle for executive talent?

Private equity value creation starts with the best leaders in the right seats. Getting there requires dedicated resources, a deep talent network and the correct tools to manage the process efficiently. Firms that build this infrastructure – or partner with those who have it – hire faster, hire better and create value sooner. Those that don't will keep losing ground to firms that do.

Does your team have the ability to go at it alone? If you’re unsure, let me know!