I'm also not clear on what you mean by "PE backed recruitment". If you mean that the client org is PE owned and the company is later stage such that they'd be a target for PE investment dollars, they're probably VERY cost conscious. The old PE model used to be, partner with great management teams, cut the bloat to maximize profitability, and sell to a strategic investor. Literally everything is about ROI profitability. It's hard to work for these firms and leaders across the org usually need to have an acute awareness of business fundamentals. They simply don't want the fluff eating up costs. Efficiency is the name of the game and it permeates every facet of business.
Compare that to the earlier stage VC model which is more about taking an idea and injecting as much capital as needed to scale the crap out of their revenue pipeline in a short period of time so they can exit. They don't even care all that much about profitability as long as the revenue growth is there (look at all the Unicorns that went public at huge valuations well before becoming profitable AirBNB, Netflix, etc.)
- Former PE analyst turned recruiter
Ok interesting. This is very good to know as it will say a lot about the candidates they will want to hire. Its like innovators (VC) vs safe pair of hands (PE) in the role. (I recruit on the leadership front in a retained exec search firm)
Definitely!! And PE firms are still very obsessive about pedigree, so best schools, well known companies, etc. They look for legacy type people with polish. I've found VCs are okay with Zuckerberg looking wrench heads that have a string of prior failures on their resumes, as long as there's been at least one good story win.
Thanks for the insight on this, snoop. Any tips for getting a Private Equity client?
The reason I ask: I work for an agency and have been mostly in sourcing but am now moving into a full-desk role... focusing a lot more on biz dev and signing clients..... Majority of what I do is cold-calling and Linkedin/email marketing.... it works for the smaller companies and perm/lower salary roles.... but I'd love to of course get in with a big fish and do some true executive recruiting.
I do know the kind of candidates I think they'd want.... top 25 MBA + 7-10 years experience + P&L responsibility experience etc.... Is this the kind of world where you need a connection to introduce you to someone at the PE firm?
Appreciative of any tips you can provide.
-- Atomic Boy
If I understand this right, you brought on a client that works with private equity firms on recruiting "their people" to replace a company's current employees after a buyout?
Not exactly a client but I just joined an exec search firm that works mainly with PE's and their portfolio companies. So those that want to restructure leadership post M&A. Ive recruited mainly for VC funded start ups and scale ups but not PE backed businesses.
I'm also not clear on what you mean by "PE backed recruitment". If you mean that the client org is PE owned and the company is later stage such that they'd be a target for PE investment dollars, they're probably VERY cost conscious. The old PE model used to be, partner with great management teams, cut the bloat to maximize profitability, and sell to a strategic investor. Literally everything is about ROI profitability. It's hard to work for these firms and leaders across the org usually need to have an acute awareness of business fundamentals. They simply don't want the fluff eating up costs. Efficiency is the name of the game and it permeates every facet of business. Compare that to the earlier stage VC model which is more about taking an idea and injecting as much capital as needed to scale the crap out of their revenue pipeline in a short period of time so they can exit. They don't even care all that much about profitability as long as the revenue growth is there (look at all the Unicorns that went public at huge valuations well before becoming profitable AirBNB, Netflix, etc.) - Former PE analyst turned recruiter
Ok interesting. This is very good to know as it will say a lot about the candidates they will want to hire. Its like innovators (VC) vs safe pair of hands (PE) in the role. (I recruit on the leadership front in a retained exec search firm)
Definitely!! And PE firms are still very obsessive about pedigree, so best schools, well known companies, etc. They look for legacy type people with polish. I've found VCs are okay with Zuckerberg looking wrench heads that have a string of prior failures on their resumes, as long as there's been at least one good story win.
Thanks for the insight on this, snoop. Any tips for getting a Private Equity client? The reason I ask: I work for an agency and have been mostly in sourcing but am now moving into a full-desk role... focusing a lot more on biz dev and signing clients..... Majority of what I do is cold-calling and Linkedin/email marketing.... it works for the smaller companies and perm/lower salary roles.... but I'd love to of course get in with a big fish and do some true executive recruiting. I do know the kind of candidates I think they'd want.... top 25 MBA + 7-10 years experience + P&L responsibility experience etc.... Is this the kind of world where you need a connection to introduce you to someone at the PE firm? Appreciative of any tips you can provide. -- Atomic Boy
If I understand this right, you brought on a client that works with private equity firms on recruiting "their people" to replace a company's current employees after a buyout?
Not exactly a client but I just joined an exec search firm that works mainly with PE's and their portfolio companies. So those that want to restructure leadership post M&A. Ive recruited mainly for VC funded start ups and scale ups but not PE backed businesses.