Private Equity Needs a New Talent Strategy.

TALENT development; LEADERSHIP; PRIVATE equity funds; VALUE creation; EMPLOYEE empowerment

Historically, the efforts of private equity firms to address leadership challenges have been limited primarily to replacing portfolio-company CEOs. Now, in an era of higher interest rates and more competition for limited acquisition targets, these firms are realizing that they need to make more-systematic investments in leadership development. The author offers a variety of prescriptions for PE firms, portfolio companies, and dealmakers, including hiring and empowering “chief human capital officers” to create a firm-level talent strategy, developing a leadership playbook, tasking portfolio companies with creating a leadership agenda, and rigorously assessing organizational effectiveness and talent during due diligence for company acquisitions. [ABSTRACT FROM AUTHOR]

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