3 Ways Private Equity Changes the Game in Recruiting

Private Equity Executive Recruiting

Private equity (PE) firms are often unfairly perceived as takeover specialists, only concerned with numbers on a spreadsheet and finding exit strategies that lead to big buyouts. Employees of a PE firm’s portfolio companies also fear layoffs, thinking the PE firm will ultimately “get rid of everyone” in preparation for selling off companies.


But PE firms’ approaches to hiring and managing talent tell a different story. A recent study conducted by Ernst & Young and Private Equity International (PEI) found that 51% of PE firms believe retaining talent is the top issue to remain competitive in the marketplace, while 53% ranked developing personnel as one of their top objectives over the next two years.


180one has witnessed this emphasis on talent firsthand in our work with several PE-backed clients over the past few years. Today on The Water Cooler, we look at how PE firms are having a positive impact on the recruiting world in the first article of new series about private equity and executive search..


From Buy & Sell to Buy & Transform

While corporate ownership in the US has shifted from public to private over the past few decades, PE firms have also evolved how they bring in and manage their portfolio companies. A 2016 article from Harvard Business Review explains how, in this new phase of PE ownership, firms must bring more than financial discipline and strategic expertise to their portfolio companies.


PE firms experience both winners and losers among their investments. When looking at their portfolio companies’ performances, they have started recognizing the importance of talent in creating a strategic advantage that leads to success. Today’s PE firms realize that they aren’t just buying a legal entity when making new investments; rather, they also acquire a management team and organization of people equipped to execute the company’s plan.


Now PE firms have begun to place more value on acquiring and retaining talent, strengthening HR practices and innovating the organizational operations of their investments in order to keep that strategic advantage.


Bringing Sophistication & Expertise to the Hiring Process

Engaging in their portfolio companies’ hiring processes used to mean that PE firms would leverage their network to identify talent or be actively involved in interviewing and selecting candidates. Today’s PE firms, on the other hand, emphasize the importance of strong recruiting and HR processes by investing in and sharing best-in-class hiring practices across their portfolio.


PE firms originally drove savings by consolidating shared resources such as Audit, Banking and Legal services via contracts with preferred vendors. Now they take a similar approach by investing in Talent Management services that they deploy across their portfolio when needed.


This approach provides smaller companies who possess nascent HR functions access to new tools and practices, including behavioral assessments to truly evaluate candidates and compensation benchmarks to remain competitive in the marketplace. PE firms also invest in building relationships with executive recruiting firms, vetting these firms and negotiating favorable terms on behalf of their portfolio.


Injecting this knowledge and sophistication into their portfolio ultimately evolves the holding companies’ hiring practices and offers them a “leg up” in attracting top candidates.


Experienced in Recruiting C-Level Talent

PE firms invest in dozens of companies, giving them insight into C-level leadership across a variety of organizations and industries as well as a plethora of expertise in recruiting the right candidates for those positions.


Through their previous experiences, seasoned PE executives are able to identify the appropriate balance between soft and hard skills needed in a C-level candidate and often have a better understanding of the existing talent pool. Although they may not make the final hiring decision, PE firms nevertheless are able to advise their portfolio companies during the recruiting process and ensure that they select strong leadership.


As PE firms shift their focus from financial fixes to company transformations, their emphasis on talent management and sophisticated processes has allowed their portfolio companies to evolve as well, boosting them to a new playing field when it comes to competing for candidates.


Interested in reading more about PE Firms and recruiting? Consult these resources:
5 Reasons Strong Talent Management is a Top Priority for PE Firms
 | How Private Equity Firms Hire CEOs


And don’t miss 180one’s work with some of our PE-backed Clients: Columbia Distributing | Owen Equipment | OFD Foods

By Catherine Landgraf 24 Apr, 2024
Chief Financial Officer Instrument is a creative technology company headquartered in Portland, Oregon consisting of 300 talented people focused on redefining brands and experiences. Our teams push the boundaries of design, technology, and innovation for some of the world’s leading brands such as Google, Amazon, Spotify, and Nike. We are a collaborative partner to businesses seeking transformation and growth. We concept, design, and deliver best-in-class products, marketing, and brands. Check out some of our work here . We're searching for a strategic and business-minded Chief Financial Officer to help lead the agency toward its goals during our next phase of growth. Reporting to the CEO, you will partner with executives and team leaders to achieve financial performance by providing insightful information to the organization for decision-making, as well as challenging the status quo to yield better ideas and outcomes on behalf of the agency. What You'll Do Strategic Planning Leadership: Drive and oversee annual strategic planning processes with the CEO, ensuring alignment with organizational goals and objectives. Partner with Business leads during annual business planning, quarterly forecasts (and updates) to provide a strategic outlook and point of view on how to elevate the team and business to meet/exceed targets. Financial Reporting and Analysis: Ensure that our financial reporting is accurate and timely, and that company leadership has access to reliable data necessary to effectively manage the organization. Deliver monthly financial statements in compliance with tight public reporting deadlines, while working with both internal and external stakeholders. Understand and communicate variances of financial performance. Generate cash flow forecasts for our parent company and work with other team members to make necessary changes to improve accuracy. Support and take responsibility for all internal and external audits and/or reviews. Build productive relationships with auditors and the parent company. Strategic Financial Management: Partner with the CEO ensuring that Instrument’s financial performance is aligned with the strategic plan and the finance organization functions efficiently and with a high degree of service to the organization. Work closely with the CEO and manage a close working relationship with our parent company. Provide timely, accurate, and clear financial information as necessary. Lead the business and financial planning aspects of the company, including monthly/annual budgets, revenue forecasts, and projections. Evaluate, enhance, and manage all finance-related budgets, forecasts, and processes. Identify, drive, and engage in ad-hoc initiatives designed to improve the profitability of the company. Be fully responsible for the company’s financials. Team Leadership and Development: Manage, lead, and develop a team of direct reports responsible for all accounting and finance functions including AP, AR, and Financial Planning & Analysis processes. Operational Efficiency and Compliance: Recommend and implement improvements to all operational finance processes. Safeguard the company; review, develop and manage internal controls designed to comply with SOX requirements. Monitor, maintain, and update the company’s ERP and other financial tools and systems. What You'll Bring The ideal candidate will have 15+ years of progressive experience in accounting, financial analysis, budgeting, and forecasting with 5+ years as a leader. Bachelor’s degree in accounting, finance or a related field required. CPA, and Masters/MBA preferred. Preferred experience working with rapidly growing professional services firms. Proven experience managing, coaching, and mentoring a team of direct reports. Confidence in preparing, summarizing, and effectively communicating financial information to a broad audience. Excellent communication and organizational skills. Must be flexible, with the ability to drive and adapt to change. Interested in Learning More? 180one is a retained search firm and has been engaged by Instrument to manage this search. If interested in learning more about the opportunity, please contact Matt Oltmann at matt.oltmann@180one.com / 971.235.6236
24 Apr, 2024
We are excited to announce our recent collaboration with Forest City Trading Group, resulting in the placement of their new Vice President of Application Development! Forest City Trading Group (FCTG), as an employee-owned organization, is among the largest lumber wholesale distributors in the US with roots going back to the 1960s. They facilitate the distribution of products across 6 continents through their network of 13 operating companies and close to 700 employees. As proponents of forest sustainability, they actively support suppliers who use sustainable forest management practices that promote forest sustainability and result in long-term environmental, social, and economic benefits. Congratulations to FCTG, and the 180one Search Team on a successful executive placement!
By Catherine Landgraf 24 Apr, 2024
Chief Executive Officer The Company For over 35 years, Terra Dynamics (“TDI”) has delivered an environment of excellence to their clients through successful delivery of park and field construction, wetlands mitigation, landscape architecture, and greenspace enhancement projects. With experience in public works - and a commitment to quality, performance, and safety—Terra has secured one of the finest reputations in the industry. They lead the industry in innovation, application, technology and performance. The differences are the belief that one company should be everything you need in a commercial landscape construction contractor as well as the knowledge and experience to deliver the best to their clients. In 2023, Terra expanded their footprint with the acquisition of Paul Brothers Inc, a 3 rd generation owned commercial landscaping company based in Boring, Oregon. Together these companies have a combined 85 years of experience delivering top quality projects while making a lasting impact on parks, playgrounds, schools and more around the Pacific Northwest. The Role Reporting in the Board of Directors, the CEO will lead the organization that has experienced long-term success and sustainable growth. The CEO shall possess the leadership skills to build upon the organization’s record of quality, expansion and excellence to drive continued success. The CEO serves as the face of Terra Dynamics and builds and maintains relationships in order to advance and support the organization’s mission, programs and services. Ideal CEO Candidate will need to be skilled in the following areas Leadership Skills : Through leadership, create a unified organization. Ability to develop, communicate, and implement sustainable short-term and long-term vision for Terra Dynamics. People Leadership : Develops a strong leadership team to maximize operations and future growth while maintaining a culture of shared responsibility and stewardship among Terra Dynamics and the Board. Ensures a work environment that recruits, retains and supports quality staff, and that the appropriate processes are in place for recruiting, selecting, developing, motivating and evaluating staff. Strategic Planning : A balance of long-term strategic thinking and short-term tactical thinking to drive goals aligned with Terra Dynamics goals of consistent and sustainable growth, with a heavy focus on profitability. Operational : Understands the need to create a strong and repeatable infrastructure that supports the current organization and future growth for delivering a consistent, quality experience for both clients and employees. Leverages technologies and processes to be less labor intensive for both execution of projects and tracking their respective performance that results in greater efficiencies for the team. Business Acumen : General business interest that includes creating a financial vision, and strong overall financial acumen including understanding of the balance sheet. Knowledgeable about standard business practices (planning, metrics, P&L management), and a track record of building efficient organizations with low waste and success at profitable execution. External Relations : Maintains relationships with key personnel in State and Local governments, as well as other key external relationships including other General Contractors, Bonding and Insurance companies, and other support organizations. Qualifications Bachelors degree in Construction Management, Civil Engineering or related field. 10+ years of experience in commercial construction management overseeing multiple multimillion-dollar projects. Construction experience working with State and Local government contracts. Demonstrated proficiency and expertise in the following areas: Construction management Budget development and control Persuasive presentations Bid process and Estimating Recruiting and Development Contract review, negotiating, and administration Preconstruction costing Field personnel management Interested in Learning More? 180one is a retained search firm and has been engaged by TDI to manage this search. If interested in learning more about the opportunity, please contact Rochelle Fleisher at: 503.699.0184 or rochelle@180one.com
More Posts
Share by: