Private equity firms are adding to their payrolls at a rapid clip, buoyed by strong institutional support for funds both old and new, and by a growing need for deal professionals, talent executives, and fundraising executives.
Bill Matthews (pictured), co-founder and partner at executive recruiting shop BraddockMatthews, called growth in private markets “white-hot,” and pointed to his firm’s recent work for two first-time funds raising tallies of between $800 million and $1 billion.
Indeed, Private Equity Career News has written about no fewer than 10 new firm launches this year. Those with hiring plans over the next several months include BharCap Partners, Datavest Partners, and Cypress Creek Partners.
Established firms also continue to hire. Among private equity shops that have brought aboard at least four executives above the junior level this year are Advent International (including a human capital director), Francisco Partners (including a head of business development), GI Partners (including a senior executive advisor of ESG), Palladium Equity Partners (including a managing director of fundraising), Peak Rock Capital Partners, Resurgens Technology Partners, Thoma Bravo (including a managing director and head of ESG and impact investing) and Thomas H. Lee Partners (including a director of talent). That’s according to the PECN hiring database, available to members.
The upshot? Competition for top talent is intensifying, compelling private equity firms to make sure they offer attractive pay packages and flexible workplaces. “Being incredibly hard and fast and incredibly strict on things isn’t going to be attractive to employees,” said Tracy Keogh, the newly installed chief people officer and growth partner at Great Hill Partners.
More hiring trends:
* Diversification: Firms often hire teams to head up new investment strategies. Earlier this year, for example, New York City-based buyout shop Trilantic North America hired two executives to lead the firm’s first major foray into special situations investing. This week PECN broke newsthat New York City-based buyout shop One Rock Capital Partners had hired hedge fund founder Eric Yip to lead a push into debt strategies.
* Talent Acquisition: All the hiring by firms and their portfolio companies has created demand for chief talent officers. As reported last week by PECN both Shore Capital Partners and Great Hill Partners hired new chief talent or people officers, joining Blue Wolf Capital, Charlesbank Capital, H.I.G. Capital and TPG Capital.
* Fundraising: With fundraising at historic highs, firms have been adding to their investor relations and fundraising teams. According to an upcoming report by executive recruitment firm Willow Hill Advisors, of 37 private equity professionals surveyed earlier this year, 11 percent are actively recruiting new hires in investor relations and fundraising roles, and another 24 percent are opportunistically meeting candidates.
* Diversity, Equity, Inclusion: Kenna Baudin, partner and head of U.S. private equity at executive recruitment firm Egon Zehnder, told PECN this week that, when it comes to diversity, “it’s important that private equity firms…reflect the world in which they operate.” Oaktree Capital Management has tapped one of its managing directors to be head of diversity and inclusion, according to a press report, while Bain Capital recently hired former Harvard Kennedy School executive Victoria Budson as global head of diversity, equity and inclusion, according to PECN. Other firms with similar positions on the payroll include The Carlyle Group, Blackstone Group, KKR & Co and Vista Equity Partners.
By Ryan Hibbison and David M. Toll