【Altrata】Altrata2025全球私募股權(quán)PE投資組合公司人才報告

PortfolioCompanyTalent2025

Thoughtleadership

PortfolioCompanyTalent2025

LTRT

BrianAlster

ChiefExecutiveOfficer

ManuelBianchi

GlobalHeadofSales

OliviaLogan

VicePresident,Marketing&CorporateDevelopment

AmandaCifone

VicePresident,Marketing

Leadauthors

MayaImberg

SeniorDirector,HeadofThoughtLeadershipandAnalytics

MaeenShaban

DirectorofResearchandAnalytics

BettinaLengyel

AssociateAnalyst,ThoughtLeadershipandAnalytics

Design

DawnLastre

VisualCommunicationsSpecialist

?Altrata.February2025.

Thispublicationisforyourinformationonlyandisnotintendedasanoffer,orasolicitationofanoffer,tobuyorsellanyproductorotherspecificservice.Allinformationandopinionsindicatedaresubjecttochangewithoutnotice.

Contents

01

Executivesummary4

02

Introduction5

03Leadership:akeycomponentofvaluecreation

7

04

Today’sportfoliocompanyleadershipteams9

Genderdiversity10

Ageandgenderdiversityovertime13

Timeinrole14

Typeofappointment15

Professionalandsectorbackground17

Corporateexperience20

Education22

05

Methodology24

06

AboutAltrata25

Altrata|PortfolioCompanyTalent2025

Altrata|PortfolioCompanyTalent2025|4

01Executivesummary

>

>

>

Theevolvingnatureofvalue-creation

strategiesmeansprivateequity(PE)

firmsarenowincreasinglyseekinga

broaderrangeofcompetenciesfor

leadershipteamroles.Firmsthatareabletoidentify,hire,developandretainthe

toptalentstandtobenefitconsiderablyindrivingtheperformanceoftheirportfoliocompaniesanddeliveringaprofitable

exit.Theseexecutivesalsohavevaluableconnectionsthatbringwidervalueto

thePEfirmintermsofrecruitment,duediligenceandbusinessdevelopment.

Portfoliocompaniesinfivemajor

marketsinNorthAmericaandEurope

continuetoshowapronouncedgenderimbalanceintheirleadershipteams.PE

firmsintheUSexhibitthehighestfemaleshare(24%),marginallyaheadofCanada;thesharefallstoafifthintheUKand

France,andjust14%inGermany.Genderdiversityisalsogenerallylowerthanat

listedcompanies.Thereisahugevariationinthegendersplitacrosstheprominent

C-suiteroles,withwomenaccountingforonly11%ofUSportfoliocompanyCEOs

butthemajorityofCHROsandCMOs.

Around70%ofcurrentleadership

teammembers(and80%ofCMOs)at

USportfoliocompanieswereexternal

appointments.TherespectivesharesfortheUKareslightlylowerbutfollowthe

sametrend.Thisstandsincontrastto

publiclylistedcompanies(smallcapandespeciallylargecorporates),whichleantowardsinternalhiresforseniorexecutiveroles(60-70%areinternalappointments).IntheUS,thisexternalsharehasdeclinedbymorethan10percentagepointsfrom83%in2014,withasmallerdropintheUK.

>

>

>

Previoussenior-levelexperienceinthetech,businessservices,financeand

privateequitysectorsisparticularly

valued.Some54%ofUSportfolio

companyleadershipteamexecutives

havepreviouslyheldaseniorpositionin

thetechsector,followedby30%and25%inbusinessservicesorfinancialservicesrespectively.Healthcareandpharma/

biotechexperienceisalsocommon

becauseoftheneedforspecialized

knowledgewhenworkinginthese

sectors.Some17%havepreviousseniorexperienceofworkingdirectlyinaPE

firm,indicatinganestablishedcrossoverpathwaytoaportfoliobusiness.

MostUSportfoliocompanyCFOsand

CEOshaveexperienceofmergersand

acquisitions(M&As).AmongCFOs,62%

havebuyer-sideexperienceand63%haveseller/targetexperience.Suchexperiencecanoftenbeamajorfactorinthe

recruitmentprocess–portfoliocompanies,backedbytheirPEowners,mayacquire

othercompaniesbeforetheyeventually

looktoexit.Inaddition,aroundhalfof

CEOsandCFOshaveprevioussenior-levelC-suiteportfoliofirmexperience.

AlmosthalfofUSportfoliocompany

CFOshaveanMBAdegree,thehighestshareamongkeyC-suiteroles.Still,thisisnotsofaraheadofthethirdofCMOs,COOsandCEOswhohaveMBAs.Only

CHROsfallbelowathird–at23%.Whenitcomestoalumniingeneral,Harvard

Universitysuppliesthehighestnumberoftoday’sportfoliocompanyCEOsandrankssecond,behindtheUniversityofPennsylvania,forCFOs.

Altrata|PortfolioCompanyTalent2025|5

02Introduction

Inashiftinglandscape,privateequity(PE)firmsareacutelyawareofthecriticalroleofleadership

teams1indrivingtheperformanceoftheirportfoliocompaniesanddeliveringaprofitableexit.As

value-creationstrategiesevolve,firmsareincreasinglyseekingabroaderrangeofcompetenciesforleadershipteamroles.Inthiscomplexandhighlycompetitivemarket,firmsthatareabletoidentify,hire,developandretainthetoptalentstandtobenefitconsiderably.

Altrata’sPortfolioCompanyTalent2025–thesecondeditionpoweredbyBoardExdata–analysestheleadershipteamsofportfoliocompaniesinfivemajormarkets:theUS,theUK,Canada,GermanyandFrance.OurresearchencompassesalloftheC-suiteroles,withafocusonthethousandsof

currentchiefexecutiveofficers(CEOs)andchieffinancialofficers(CFOs),thekeydecision-makerswithresponsibilityforimplementingaPEfirm’sinvestmentstrategytoitssuccessfulconclusion.

WebeginwithanoverviewofdevelopmentsintheglobalPEindustryand,notingamorepositive

outlookheadinginto2025,wediscusstheimpactontalentrecruitmentandthepivotalroleof

leadershipteamsinthespecializedenvironmentofPE-ownedfirms.WediscussthelargenumberofconnectionsthatmostseniorC-suiteexecutiveshavetopeopleinleadershippositionsingeneral,

andthewiderbenefitsthesebringtothePEfirmitself,aidingrecruitment,duediligenceeffortsandfacilitatingbusinessdevelopment.

DrawingonBoardEx’suniqueandextensivedatabase,weexaminethekeycharacteristicsofportfoliocompanyleadershipteams,withafocusonthoseintheUSandtheUK.Weexploretheteams’age

andgenderprofile,thetimetheseexecutivesspendintheirrespectiverolesandtheshareofinternalandexternalappointments,alsodetailinghowthesecharacteristicshavechangedoverthepast

decade.WedrawoutkeythemesthroughoutandidentifythemainsimilaritiesandcontrastsbetweenC-suitemembersatlistedsmall-capandlargecompaniesandalsobetweenkeyC-suiteroles.We

concludewithadeepdiveintotheprofessionalandhighereducationbackgroundsofCEOsandCFOsatPE-ownedfirmsintheUS,detailingtheirsectorexpertiseandcorporateactionexperience.

Altrata’sPortfolioCompanyTalent2025offersauniqueinsightintothegroupofseniorexecutives

wholeadandsteerthesecompanies,makingitanessentialreadforfirmslookingtomakethemostoftheirtalentmanagementandacquisitionstrategies.

1Leadershipteamscanalsobecalledexecutivecommittees,managementboardsortheC-suite,amongotherterms.Theseteamsusuallyincludeexecutivedirectorsaswellasthetoplayerofmanagementinacompany.

Altrata|PortfolioCompanyTalent2025|6

Introduction

Howdowegaininsightontheindividualsleadingportfoliocompanies?

ThisreportusesAltrata’sBoardExanditsuniqueandproprietaryGlobalLeadershipDatabase,whichcoversboardandnon-boardmembers,C-suiteexecutives,seniorleadersandprofessionaladvisers.Forouranalysis,westudytheindividualswhomakeupthecurrentleadershipteamsatportfolio

companiesacrossfivemajormarketsinNorthAmericaandEurope:theUS,Canada,theUK,GermanyandFrance.Toensureweexaminedthemostup-to-datesetofportfoliocompanies,werestricted

ourcriteriatothosethathadreceivedatleastoneroundofPEinvestmentsince2018.Intotal,ourresearchencompassesalmost12,000companiesand55,000individuals.

Forfurtherdetails,pleaseseetheMethodology.

Termsusedinthisreport

Portfoliocompany

Forthepurposesofthisreport,aportfoliocompanyisacompany(publicorprivate)thatisfullyorpartiallyownedbyaPEfirm.SuchcompaniesarealsoreferredtoasPE-ownedfirms.

Leadershipteam

CorporateleadershipteamsaresometimesreferredtoastheC-suite,executivecommitteesor

managementboards.Theyusuallyincludeexecutivedirectors–themostprominentbeingtheCEO

–aswellasacorporation’stoplayerofmanagement.Theleadershipteamincludesexecutivechairs(butnotnon-executivechairs).

Altrata|PortfolioCompanyTalent2025|7

03

Theleadershipteam:

akeycomponentofvaluecreation

>OpportunitiesandchallengesinashiftingPElandscape

TheglobalPEmarketcontinuestooffersignificantopportunity.Renewedgrowthisakeytheme,

followingasubdued2024andachallengingperiodfollowingtheboomperiodof2021-22.Dealactivityisexpectedtoaccelerate,helpedbydeclinesinthecostofcapitalaswellasagrowingavailabilityoffundsandabacklogofportfoliocompaniesseekinganexitafterhavingbeendeferredinrecentyears2.

Inthisshiftinglandscape,theenvironmentinwhichPEfirmsoperatehasundergoneconsiderable

upheaval,withimplicationsforthemoreestablishedapproachestovaluecreationandtalentacquisitionattheportfoliocompaniestheyown.Withlongerholdingperiodsforportfoliofirms,amongother

factors,operationaltransformationhasbecomeincreasinglyimportant.Whileleverageandexpandingmultiplesremaincriticaltovaluecreation,revenuegrowthandmarginimprovementhavegrown

significantlyinprominenceascontributorstotheinternalrateofreturn(IRR)3.Thishasrepercussionsforthetypesofskillsandexperienceneededofthoseleadingtheseportfoliocompanies.

2PwC,2025Outlook:GlobalM&ATrendsinPrivateCapital.

3Kearney,The2025OutlookforPrivateEquity.

Altrata|PortfolioCompanyTalent2025|8

Theleadershipteam:akeycomponentofvaluecreation

>Identifyingandrecruitingtherighttalent

Areassessmentofoptimalvalue-creationstrategiesforportfoliocompanies–suchasastronger

focusonoperationalefficiency,newmarketexpansion,morediversesecondarydeals,greater

relianceonprivatecredit,ortheembraceofnewtechnologiessuchasgenerativeAI–impliesa

shiftinglandscapefortherecruitmentoftalentedleadershipteams.Theconventionalapproachof

targetingexperiencedindividualsinbankingandfinancetooverseealeverage-focusedrestructureandrapidexitisnolongerthedefaultroute.Theevolvingnatureofvalue-creationstrategiesmeansthatPEfirmsarenowincreasinglyseekingabroaderrangeofcompetenciesforseniorC-suiteroles4.Moreover,thetraditionalpoolofpotentiallyavailableexecutivesisbecomingincreasinglystretched,giventheriseinnumberofPE-ownedportfoliofirmsinthepastdecade.

Alongsidethismorenuancedapproachtoleadershipteamrecruitmentisagrowing

acknowledgementinPEfirmsthat,morethanever,selectingtherighttalent(andattherighttime)

iscritical.Thequalityofportfoliocompanymanagementiscommonlyviewedasoneofthekey

determiningfactorsintherelativesuccessorfailureofanyinvestmentdeal.Havingthewrong

leadershipinplacecancomewithaheavyprice.Makingtherighttalentdecisions–acrossmany

portfoliocompaniesandundertighttimelines–canbefarfromstraightforward.Anappropriate

leadershipteam,orthemajorityofindividuals,mayalreadybeinplaceintheacquiredcompanyor,

asisoftenthecase,thePEfirmmaylooktorecruitanumberofrolesinternallyorexternally.PEfirmsmustdefinetheidealexperienceandcapabilitiesforeachrole,andensurethetotalsumoftheteamfitsinwiththefirm’soverallstrategyfortheportfoliocompany.Todothis,PEfirmsdrawuponboth

executivesearchandin-houseteamstorecruitnewtalent.Inaddition,PEfirmsareincreasinglyusingin-housetalentteamsthatfocusonsupportingtheportfoliocompaniesthemselveswithtalent

assessment,buildingandnurturing.

>Connectionsasaddedvalue

Inadditiontothevaluetheybringtotheportfoliocompanytheyhelm,theindividualsthatmake

uptheleadershipteamofferanumberofother,sometimesoverlooked,benefitstothePEfirm

owner.Portfoliocompanyleadershipteamsarewellconnectedtolargenumbersofseniorbusinessdecision-makers.Byleveragingthesenetworks,boththeirdirectandsecond-degreeconnections,theseindividualsbecomeahighlyvaluablesourceofcommercialopportunities.

ThesenetworksofconnectionsarealsopowerfulenablersforPEfirmsonboththerecruitment

andbusinessdevelopmentfronts.Inrelationtorecruitment,suchconnectionscanbeusefulfor

carryingoutduediligenceonanewhire.Thenetworksoftheseportfoliocompanyleaderswillalso,onoccasion,includeconnectionstohigh-potentialcandidates,shortcuttingthefirst-approachprocessforPEfirmsandspeedinguptheexecutiverecruitmentprocess.Finally,theseleaders’networks

canalsobeusedtofindawarmintroductiontoarelevantexecutiveatapotentialtargetcompany,enablingbothduediligenceandeventualdealclosures.

Portfoliocompanyexecutives’networks ofconnectionscanaidbothrecruitment

andbusinessdevelopmentefforts.

4SamuelRobberts,June272024,LCAPGroup,PrivateEquityisEvolving-itsTalentStrategyMustToo.

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04

Today’sportfoliocompanyleadershipteams

Successfulportfoliocompanyleadersmustbeabletonavigateallmannerofcommercialand

operationalchallenges,whiledrivingtheircompanytoachievehighperformance.Intheleadership

team,theCEOandCFOareparticularlyimportantinaligningthebusinesswiththePEfirm’sstrategicobjectivesand,ultimately,shapingitforaprofitableexit.

Inthissection,wehighlightthekeycharacteristicsoftoday’sportfoliocompanyleadershipteams.ThefocusisprimarilyonPE-ownedfirmsintheUSandtheUKbut,onoccasion,alsoCanada,

GermanyandFrance.Weexaminetheageprofileandgenderdistributionacrossthemajor

C-suiteroles,thetypeofappointmentanddurationintheircurrentposition,andtheirprofessional

experienceandeducationalbackground.Inadditiontocountrycomparisons,wedrawoutkeytrendsoverthepastdecadeandhighlightthemaindifferences(andsimilarities)betweenportfoliocompanyleadershipteamsandtheirpeersinpubliclylistedsmall-capfirmsandlargecorporates.

Altrata|PortfolioCompanyTalent2025|10

Today’sportfoliocompanyleadershipteams

Genderdiversity

>Risinggenderdiversity,butstillapronouncedimbalanceintopleadershiproles

Femalerepresentationinportfoliocompanyleadershipteamsisslowlyrising,althoughalarge

genderimbalancepersistswithwomenholdingonlyoneinfiveC-suitepositionsonaverage.In

ouranalysisoffivemajormarkets,portfoliocompaniesintheUSexhibitthehighestfemaleshare

(24%)acrosstheirleadershipteams,marginallyaheadofCanada.ApproximatelyoneinfiveC-suitemembersintheUKandFrancearewomen,withthesharefallingtojust14%inGermany.Asidefrom

underlyingcorporateandsocialtrends,afactorcontributingtolowfemalerepresentationacross

theboardisoftenapreferenceamongPEfirmsforpotentialleaderstohavepreviousexperienceataportfoliocompany,limitingthesizeanddiversityofthetalentpool5.

Womenonleadershipteams

Proportionofportfoliocompanyleadershipteamrolesheldbywomen

21.5%

UK

23.2%

Canada

23.9%

US

14.3%

Germany

19.8%

France

Note:CorporateleadershipteamsaresometimesreferredtoastheC-suite,executivecommitteesormanagementboards.Theyusuallyincludeexecutivedirectors—themostprominentbeingtheCEO—aswellasacorporation’stoplayerofmanagement.Itisalsoworthnotingthateachcountryhasitsowndistinctivecorporategovernancelegislation.

Source:BoardEx,anAltratacompany,January2025

5LCAPGroup,2024LeadershipCapitalReport.

Today’sportfoliocompanyleadershipteams

Altrata|PortfolioCompanyTalent2025|11

>Companyownershipandsizedomatter

TheshareoffemaleseniorexecutivesatPE-ownedfirmsisgenerallylowerthanatlisted

companies.FemaleC-suiterepresentationamongUSportfoliobusinessesissimilartothatoffirmsontheS&PSmallCap600butbelowthe28%shareatS&P500companies.Theimbalanceismore

pronouncedintheUK,withtheproportionofwomeninportfoliocompanyleadershipteamslowerthanthe23%atFTSESmallCapfirmsandsome10percentagepointsbelowthe31%shareatFTSE

100corporates.Thispoints,inpart,toascalingissue,wherefactorssuchasmorerestrictedtrainingbudgetsatsmallerfirmsaddtothechallengeofgivingsufficientnumbersofwomentheskillstheyneedtocompetewiththeirmalecounterpartsforleadershiproles.

Genderdiversitybycompanysizeandownership

Leadershipteamrolesheldbywomen(%)

USUK

S&P500

S&PSmallCap600Portfoliocompanies

28.0%

24.4%

23.9%

FTSE100

FTSESmallCapPortfoliocompanies

23.3%

21.5%

31.4%

Note:TheS&PSmallCap600Indexseekstomeasurethesmall-capsegmentoftheUSequitymarket.The600companiesincludedmusthaveanunadjustedmarketcapitalization

of$1bnto$6.7bn.TheFTSESmallCapIndexconsistsofcompanieswithamarketcapitalizationbelowtheFTSE250butaboveafixedlimit(thelowerlimitisreviewedperiodically).

Thereareapproximately211companiesintheindex,withamediannetmarketcapitalizationofaround￡220m.TheindicesdonotoverlapwiththeS&P500orFTSE100.

Source:BoardEx,anAltratacompany,January2025

Portfoliocompanieslagbehind

listedcompaniesinthegender

diversityoftheirleadershipteams.

Today’sportfoliocompanyleadershipteams

Altrata|PortfolioCompanyTalent2025|12

>AmongthekeyC-suiteroles,therearetoofewfemaleCEOs,COOsandCFOs

Leadershiproleswiththehighestexecutivepowerremainheavilymaledominated,withwomen

accountingforonly11%ofUSportfoliocompanyCEOs.Thereisahugevariationinthegendersplit

acrosstheprominentC-suiterolesofPE-ownedbusinesses.Morewomeninvariablyholdtheposition

ofheadofhumanresources,whilethereisabroadlyevendistributionintheleadmarketingrole.In

contrast,femalerepresentationisonlyaround15-20%inthemoreinfluentialdecision-makingpositionsofchiefoperatingofficer(COO)andCFO.Attheverytop,womenaccountforjustonein10portfolio

companyCEOs.Thissharehasrisenonlyslowlyoverthepastdecade(upfrom8%intheUS)andisonaparwiththelowleveloffemaleCEOrepresentationacrossmajorandsmall-caplistedcompaniesin

theUS.ImprovementshavebeengreateratUKportfoliocompanies,butfromalowerstartinglevel,

withthecurrentCEOshareonlymarginallyhigherat12%.Itisareminderoftheculturalandinstitutionalobstaclestogenderbalancethatpersistatthehighestlevels,aswellasareflectionofastillrelatively

limitedpoolofsuitablyqualifiedandexperiencedfemaleseniorexecutives6.

GenderdiversityamongthekeyC-suiteroles

ProportionofwomenatportfoliocompaniesbyC-suiterole

US

UK

77.3%

CHRO

80.1%

51.5%

CMO

50.4%

22.1%

COO

22.0%

16.6%

CFO

15.6%

10.9%

CEO

11.9%

Note:CEOstandsforchiefexecutiveofficer;CFOforchieffinancialofficer;COOforchiefoperating

officer;CMOforchiefmarketingofficer;andCHROforchiefhumanresourcesofficer.Somerolesare

moreprevalentthanothersacrosscompanies;forexample,virtuallyeveryportfoliocompanyhasaCEOandCFO,butnotallhaveaCOOorCMO.

Source:BoardEx,anAltratacompany,January2025

6McKinsey&Company,TheStateofDiversityinGlobalPrivateMarkets2023.

Today’sportfoliocompanyleadershipteams

Ageandgenderdiversityovertime

>Theaverageagehasrisenwhilegenderdiversityhasimprovedfromalowbase

Theaverageageofleadershipteammembershasrisencomparedwithadecadeagoinboththe

USandtheUK.Thispartlyreflectsthemorecomplexbusinessenvironmentinwhichmanyportfoliocompaniesoperate,withPEfirmsplacingagreateronusonthemeritsofaccumulatedexperience

andprofessionalconnectionsinguidingtheirinvestment,especiallyintheprominentCEOandCFOroles.Inaddition,leadershipteamsofportfoliocompaniesareslightlyyounger,onaverage,thantheircounterpartsinlistedfirms(aroundtwoyearsyoungerthanatlistedbusinessesontheS&P500andtheS&PSmallCap600indices).

Ageandgenderdiversityadecadeon

Averageageofportfoliocompanyleadershipteammembers

US

Proportionofportfoliocompanyleadershipteamrolesheldbywomen

US

54.1

47.6

2024

UK

2014

49.8

47.0

20242014

202423.9%

201410.4%

UK

202421.5%

201411.4%

Source:BoardEx,anAltratacompany

Thepastdecadehasseenasteadyriseinfemalerepresentationonleadershipteams.Theshareof

womeninC-suiterolesatUS-ownedportfoliocompanieshasmorethandoubledfromalowly10%in2014,withasimilar(ifslightlyweaker)developmentintheUK.Thisupwardtrajectoryreflectsagradualshiftincorporatistviewsandstructures,changinginvestorattitudestowardsdiversityandthegrowthinfemaleentrepreneurship7.Thisslowlyexpandingpoolofseniorexecutivewomenwillencourage

theprofessionalambitionsofotherfemaleworkers(andprospectiveexternalleadershipcandidates),althoughmuchremainstobedonetoapproachasemblanceofgenderparityacrosstheleadershipteamsofPE-ownedcompanies.

7Heidrick&Struggles,“Privateequityfocus:insightsfromwomenCEOsatPE-backedcompanies.”

Altrata|PortfolioCompanyTalent2025|13

Today’sportfoliocompanyleadershipteams

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Timeinrole

>CEOtenureissignificantlylongerthanthatofotherC-suitepositions

CEOsatUSportfoliocompanieshavebeenintheircurrentroleforanaverageof5.4years.This

isconsiderablylongerthanthetenureofCOOs(3.5years)andapproximatelydoublethatofotherkeyC-suitepositions,includingCFOs(2.9years).Ittalliescloselywiththetypicalfive-tosix-year

holdperiodforamajorityofPEinvestments8,9.ForPEfirmsseekingtoinstallnewtopmanagementataportfoliobusinessafteritsacquisition,whichoccursinaround70%ofcases10,thisunderlines

theimportanceofidentifyingthe“best-in-class”individualwhocaneffectivelyleadanddeliveronthePEfirm’sobjectivesduringtheirstewardship.Astableleadershipteamisapreferredscenario,

andonethatwilltendtoimprovetheprospectsofsecuringagoodreturnoninvestment.However,ongoingsuccessionplanningisalsoimportantasunplannedexecutiveturnover–orareluctancetoconsidernewleadershipshouldissuesarise–canhaveasignificantbearingonportfoliocompanyperformanceandthespeedofexit.

Tenurebyrole

portfoliocompanyrole(sofar)

Numberofyearsintheircurrent

US

UK

5.8

5.4

CEO

3.7

3.5

COO

3.1

2.9

CFO

3.2

2.5

CMO

2.8

2.5

CHRO

CEOtenuretendstobefarlonger

thanthatofotherkeyC-suiteroles.

Note:Tenureisnotcompleteastheserolesareongoing.Doesnotincludepotentialothertimeinthesamecompanyinadifferentrole.

Source:BoardEx,anAltratacompany,January2025

Thetenure(sofar)ofallleadershipteammembersatPE-ownedfirmsaverages3.7yearsintheUSand4.2yearsintheUK.AcrossallmajorC-suitepositions,seniorexecutivesatUK-ownedportfoliocompanieshavebeenintheircurrentrolesforthreetosixmonthslongerthantheircounterparts

intheUSonaverage.Thislikelyreflectsdifferencesinlabormarketstructuresandinunderlying

corporateattitudesrelatingtojobperformanceandsecurity.Inbothcountries,theaveragetenure(todate)ofleadershipteammembersatPE-ownedfirmsissimilartothatatlistedsmall-cap

companies,butaroundthreetofourmonthsshorterthanatlargepubliclytradedcorporates.

8EY,AnnualReportonthePerformanceofPortfolioCompanies,16thEdition,PrivateEquityReportingGroup,January2024.

9AndyJones,“Privateequityholdingperiodslimitfundraisingandmaylowervaluations”,PrivateEquityInfo,July2024.

10PaulAGompers,StevenNKaplanandVladimirMukharlyamov,TheMarketforCEOs:EvidencefromPrivateEquity,NationalBureauofEconomicResearchWorkingPaper30899,January2023.

Today’sportfoliocompanyleadershipteams

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Typeofappointment

>C-suitehiresarepredominantlyexternalappointments

Around70%ofcurrentleadershipteammembersatUSportfoliocompanieswereexternal

appointments,includingthree-quartersofCEOs.TherespectivesharesfortheUKareslightly

lower,butshowthesametrend.Thiscontrastswithaclearpreference(60-70%)amongpubliclylistedcompanies(small-capandespeciallylargecorporates)towardsinternalhiresforseniorexecutive

roles–again,thissomewhatmoreprevalentintheUSthanintheUK11.

Aspreviouslynoted,manyPEfirmsmovetoreplace–oftenimmediately,sometimeslater–partor

alloftheexistingleadershipofthebusinessestheyacquire.Thiscanbeforreasonsofperceived

competence,tosignifyanewstartwithoutthe“oldguard”,toenhancethefirm’svisibilityortobringinindividualsmorecloselyalignedwiththePEfirm’scultureandinvestmentstrategy.Thisapproachnaturallytendstorecruitfromoutsidetheportfoliobusiness,withanotherfactoroftenbeinga

limitedpoolofpotentialinternalsuccessorsforthemostseniorroles,giventhemodestsizeofmanyPE-acquiredcompanies.

Dominanceofexte