The global private equity sector outlook is bullish but continues to face evolving challenges. There is a significant emphasis on operational value creation (both cost and revenue) across portfolio companies. As holding periods increase and top line growth becomes more important, there is a need for greater focus on acquiring and developing the right talent and building strong, results-oriented cultures. Exceptional executive leadership, streamlining and cost cutting are not enough; P/E companies and their portfolio companies need the bench strength, reward vehicles, value proposition, and culture that will close those critical talent gaps and empower employees to achieve results.
Within your private equity company, you may also be experiencing some talent challenges. Many P/E firms are just beginning to introduce development and career tracks for partners and non-partners to build capability deeper into their organizations.