Private Equity Leadership in 2025: What’s Changing in C-Suite Hiring?

Written by Thaddeus Jones, Managing Partner & Founder

The private equity (PE) landscape is shifting rapidly, bringing significant changes to how firms approach C-suite hiring. As I discussed during the 2025 ACG Charlotte Private Equity Review panel, the industry is facing economic headwinds, increasing competition, and heightened investor expectations, all of which are reshaping leadership strategies. Today’s PE-backed companies need executives who can drive both short-term execution and long-term value creation.


A Shift Toward Portfolio-Wide Talent Strategy

Historically, PE firms focused on hiring C-suite talent at the individual portfolio company level. However, what we’re seeing now is a broader, more strategic approach—evaluating leadership needs across entire portfolios. This shift is driven by:

  • Demonstrated leadership with a proven track record – Investors want leaders who have successfully navigated high-growth, PE-backed environments.

  • Deep industry expertise – Executives must bring sector-specific insights to drive operational efficiency and revenue growth.

  • Experience with exits and value creation – Whether through M&A, IPO, or secondary buyouts, today’s leaders must understand how to maximize enterprise value.

This strategic approach ensures that the right leadership is deployed across portfolio companies, enhancing efficiency, improving margins, and setting businesses up for successful exits.

What Executives Look for in PE Sponsors

As much as PE firms are scrutinizing executives, today’s leadership talent is equally discerning when evaluating PE sponsors. At Nexus Search Partners, we hear directly from executives who weigh factors such as:

  • Track record of value creation and successful exits – Leaders want to align with firms that have a history of delivering strong returns.

  • Clarity in the investment thesis – Executives expect sponsors to articulate a clear vision for portfolio companies.

  • Operational support – Top talent gravitates toward firms that provide resources beyond capital, including strategic guidance and talent development.

  • Alignment on long-term objectives – Leaders seek firms that prioritize sustainable growth over short-term cost-cutting.

With increased competition for elite talent, PE firms must differentiate themselves by offering more than just financial incentives—they must also provide a compelling operational and strategic platform.

The Most In-Demand Leadership Roles in PE-Backed Firms

Based on the trends we track at Nexus Search Partners, demand is rising for three key leadership roles:

  • P&L Leadership (CEOs & COOs): These executives drive capital efficiency, margin optimization, and growth acceleration while navigating the complexities of PE-backed environments.

  • CFOs with M&A Expertise: Financial leaders with deep experience in acquisitions, capital structuring, and value creation are in high demand.

  • People & Talent Leadership: As firms scale operations, the need for executives who can manage cultural integration, leadership development, and organizational growth has never been greater.

Challenges Facing PE Firms in Executive Hiring

Despite the strong demand for top-tier leadership, recent Pitchbook data shows that PE firms are encountering significant challenges in hiring:

  • Intensifying competition – The talent pool for experienced PE-backed executives is increasingly competitive, making top hires more challenging to secure.

  • IPO readiness – As more firms position for public offerings, they need leaders who can navigate public markets, investor relations, and regulatory complexities.

  • Exit strategy acceleration – With shorter investment horizons, firms require operational leaders who can enhance portfolio performance and drive quicker liquidity events.

  • Fundraising and LP expectations – Firms must attract leaders who not only drive portfolio success but also enhance credibility with limited partners (LPs).

The Future of PE Leadership Hiring

Looking ahead to 2025 and beyond, private equity firms must refine their leadership strategies to stay ahead. A proactive, structured approach to executive search is critical. Firms that take a data-driven approach to leadership selection, invest in succession planning, and align incentives with long-term value creation will gain a competitive advantage.

At Nexus Search Partners, we specialize in helping PE firms secure transformational C-suite talent that aligns with their investment strategies. The future of PE leadership hiring demands a forward-thinking, strategic approach—and we are committed to helping our clients navigate this evolving landscape with precision and insight.

 

Meet the Author, Thaddeus Jones

Thadd's extensive corporate career spans several Fortune 50 companies, including Target Corporation, Lowe's Home Improvement, and Amazon. As Amazon Web Services’ Head of Global Diversity and Talent Acquisition for Worldwide Operations, he led a team that supported a workforce of 950,000 employees across the company's fastest-growing business units. These include last-mile delivery, global logistics, and specialty fulfillment (Prime, Fresh, Pantry, and Whole Foods). Most recently, Thadd served as Executive Vice President and Chief Talent Officer for Red Ventures, a multi-billion dollar operating private equity firm with over 21 companies in its portfolio, including Bankrate, CNET, Healthgrades, Healthline Media, Lonely Planet, and The Points Guy.

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