Vitality PE firms of all sizes will have opportunities to recruit and retain top talent. As they battle for talent to lead their portfolio companies, there’s always competition for top talent at PE firms themselves. And whether they’re recruiting analysts 6 from elite universities or poaching directors from rival firms, attracting and retaining the best and brightest will continue to be a challenge, particularly for smaller and less established funds. Adding to that challenge, more than half of PE firms lack succession plans, and most of the rest report they don’t have adequate talent in the pipeline to promote, largely because they haven’t developed talent internally. But there are opportunities for them: Such firms can get similar results through a strong benefits partner that can PE executives realize the importance of hiring and deliver the same type of services as a highly compensated developing talent within their firm. They say quality of CHRO. Tools such as Workforce Persona Analysis help leadership and succession are the most important factors in deliver personalized benefits that engage employees at all determining their success, three times more important than levels of the organization. portfolio rationalization and twice as important as artificial 7 No longer can a PE firm hire a B-level team and intelligence. get A-level results. 6. Peak Frameworks, “Best Private Equity Placement,” accessed September 12, 2024. Instead of sitting back, they’re seeing an opportunity to 7. Alix Partners, Leadership and the Future of Value Creation: The recruit top talent from the full spectrum of financial services, New PE Imperative, March 2024. often from organizations outside of PE or even finance. And large, well-heeled PE firms are hiring former CFOs, CMOs and CTOs from other companies, and increasingly, they’re hiring former Chief Human Resource OfÏcers (CHROs). PE firms hope that ex-CHROs not only can elevate recruiting and retention, but also implement learning and development programs, as well as create sophisticated, personalized benefits plans. They’re also leveraging that expertise within their portfolio companies. Smaller PE shops usually cannot afford to hire high- level CHROs from top companies, as such positions can command mid-six-figure salaries plus bonuses. 4