by Caitlin Cassidy, Vice President Executive Search
Edited by David Portney, Marketing Manager
Finding the best talent in private equity is anything but an exact science. It involves a unique set of expectations, challenges and rewards, so why would PE firms and their portfolio companies handle their talent acquisition needs in an ordinary way?
I’ve spent 15 years as a recruiter and I’ve seen thousands of resumes, applications and LinkedIn profiles – not to mention the countless conversations I’ve had with clients, candidates and referrals – so I’m often asked what I’m looking for when filling searches for client organizations. While the answer isn’t a simple checklist, I can pull back the curtain to hopefully help those better understand what private equity recruiters like me search for.
Before I even start the process of sourcing candidates, I get to know the PE firm and the portfolio company at a deeper level than the words in a job description. Each one has its own culture and expectations for the role and the person coming onboard, so I want to grasp what type of leader can truly thrive in that specific environment. Is the company requiring a turnaround specialist or undergoing an acquisition where they need a Lean transformation leader? This kind of information is quick to discover, but finding the right candidate that checks the qualification boxes while fitting in culturally is the secret sauce.
If I’m hiring for a C-suite level role, I like to see them come out of classic corporate training then head into smaller companies. That way, I know they can take all those developed skills and experiences and apply them into their new environments where they’re now big fishes in smaller ponds. These individuals are often data oriented; visible shopfloor leaders; can run kaizen events; and clean the machinery if that’s what it takes. Continuing the career climb on a larger scale – about every 3-5 years – is how they catch the eye of people like me.
Private equity requires leaders who drive results and act as change agents. They look for opportunities to quickly increase EBITDA, and those seeking leadership roles can prove they’ve accomplished it multiple times. What separates the A-players from the rest of the field is their ability to demonstrate how they accomplished those feats. Yes, of course it’s important for recruiters to see the hard data, but effectively explaining how those numbers came about can often set them apart.
For example, “I drove top-line growth by integrating seven acquisitions” is a simple sentence in a resume or LinkedIn profile that can pique the interest of PE recruiters. Bonus points if there’s space to identify where the company started and ended, but even if there’s no room, it’s important to explain that come interview time.
PRO TIP: For those already in or who aspire to join the private equity space, you’ll save a recruiter a ton of time by noting your current company’s ownership structure somewhere on the resume.
Noting successful exits to support the data and the aforementioned “how” is one of the most important parts of a PE candidacy. At the end of the day, private equity firms need leaders who can quickly increase revenue that leads to a successful payout, so I’m looking for talented individuals who have that experience. However, candidates can trigger a red flag if they fall into the trap of overly explaining with too many buzzwords. Experienced recruiters have seen and heard all the terminology and phrases and can tell when they’re simply being used to try and impress.
This is what separates the good recruiters and talent acquisition teams from the great ones – it takes the best to hire the best. The top recruiters can sense when something’s off because we’ve seen and heard it all over several decades of the PE boom. We search for direct and clear communicators who are results oriented, so we have a discerning eye for the genuine and truthful A-players.
Whether it's for CEOs or other leadership positions, candidates who demonstrate a track record of driving results supported by tangible examples and successful exits, stand out in the eyes of seasoned recruiters like myself and the rest of the team at Stiles Associates.