Recently, we’ve been fielding more frequent hiring requests from private equity backed companies in industries like beauty, jewelry, sporting goods and other key consumer industries. We thought it would be a good time to break down how we approach recruiting talented executive candidates for the C-suite within this unique business scenario.
Creating an executive profile for a private-equity backed company
When working with a firm that is looking for a CEO or head of marketing, sales or any other key role, we first work to identify any unique characteristics they are looking for in a hire.
Typically, we find that private equity firms are looking for the following in candidates:
- Financial savvy and a track record of being able to raise revenue on a tight timeframe.
- Proactiveness in dealing with the firm’s needs.
- Quickness to adapt to the firm’s culture, operations and reporting structure.
- Relentless focus on growth.
Skills that private equity firms prize
Over and over again we hear from private equity firms who are looking for candidates who are tailored for a specific role but also:
- At a stable part of their career.
- Capable of turning a company around or boosting revenue at a company at a key stage of growth.
- Experienced in similar companies.
- Open to tying their compensation to the growth they are able to spearhead.
What you should know as the candidate for a private-equity backed company
- Entrepreneurial and growth-focused mindset: we look for candidates who can master the urgency of working with a company that has a specific (and usually tight) timeline for return on investment
- Collaborative and team-oriented: for as much as these candidates need to lead decisively, they also need to be able to work within existing structures and teams.
The role of equity in the compensation package
Candidates considering joining a private-equity backed company will want to evaluate the following:
- The company’s capitalization table
- Expected infusions of capital and timeline
- Equity dilution and the value of equity in each round of funding
- Percentage of ownership and breakdown of founders, investors and other owners
Further, there are unique compensation options for C level executives in PE-backed companies, including potential co-investments and equity incentives that determine an executive’s eventually payout upon exit.
Special reporting qualifications to the firm
Private equity companies are looking for rapid results from financially-minded candidates who can also quickly adapt the unique reporting structure of working with a venture-back firm.
Distressed companies, companies in turnaround, firms in various stages of fund-raising all require different skillsets in executive decision makers.
Further, our private equity clients all have a different goal in terms of whether they see the company being sold or taken public, along with various other liquidity outcomes.
How We Work to Recruit Executives for Private Equity Backed Companies
We at ACCUR Recruiting Services have extensive experience in assisting private equity firms staff their portfolio companies. Over time we have developed an expertise in selecting seasoned executives from Fortune 500 companies who have the mindset and skills to engineer successful outcomes in PE-backed entities in various stages of growth.
Contact us to find out how we can assist you in finding the right executive team for your portfolio company.