Member Thought Leadership
Human capital is one of the most important elements of success in a private equity deal — albeit often overlooked in comparison to standard diligence areas such as strategy, operations and finance. That said, we have seen an increasing number of firms tap into human capital strategies to improve performance throughout the ownership life cycle.
To understand private equity talent trends better, Spencer Stuart recently reviewed more than two dozen private equity firms — one group of the largest firms (AUM $70 billion or more), and another group of mid-sized firms (AUM $30 billion to $70 billion) — and examined how many are conducting any of 14 different talent strategies (see figure). Their findings resulted in five key talent trends:
- Mid-cap private equity funds are making progress compared to mega funds.
- Pre-deal moves are gaining traction.
- Large firms target team and organizational effectiveness.
- Annual management reviews are becoming more common.
- CEO succession planning takes center stage.
Read the full article to better understand each trend .
