Private equity attracts talent by prioritising culture over comp
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Rupert Bell, CEO, recently spoke with Real Deals about the growing challenge of attracting senior leaders. With more PE-backed companies than ever, competition for talent is fierce.
Rupert explains that while financial incentives remain important, culture now leads the list of priorities for recruits. To succeed, firms must focus on culture as much as compensation to secure leaders who can drive growth.
Rupert explains that while financial incentives remain important, culture now leads the list of priorities for recruits. To succeed, firms must focus on culture as much as compensation to secure leaders who can drive growth.
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"The bigger priority for potential recruits is around the culture of the environment, the setting, the people that they would be working with"
The culture advantage
Ensuring portfolio companies are led by talented individuals is key to driving value and delivering strong returns. To meet LPs’ expectations, private equity firms are increasingly focusing on hiring senior executives who can make a real impact. This has led to more investment in operating partners, talent acquisition teams, and candidate databases.
However, securing the right leaders remains challenging. Invest Europe reports 28,610 PE-backed companies in 2023, up from 22,659 in 2018, but the pool of PE-experienced executives hasn’t kept pace, intensifying competition.
Rupert Bell, CEO, explains, “In recent years, with a war for talent, our role has become much more about selling for our clients, to position them as the employer of choice.” While financial incentives have traditionally attracted management teams, often through shares or profit-sharing, Rupert notes this is no longer enough.
“The bigger priority for potential recruits is around the culture of the environment, the setting, the people that they would be working with,” he says. “There’s a hierarchy of priorities: culture, strategy, and then money.”
In today’s market, PE firms must prioritise culture alongside compensation to attract leaders who can drive exceptional growth.
However, securing the right leaders remains challenging. Invest Europe reports 28,610 PE-backed companies in 2023, up from 22,659 in 2018, but the pool of PE-experienced executives hasn’t kept pace, intensifying competition.
Rupert Bell, CEO, explains, “In recent years, with a war for talent, our role has become much more about selling for our clients, to position them as the employer of choice.” While financial incentives have traditionally attracted management teams, often through shares or profit-sharing, Rupert notes this is no longer enough.
“The bigger priority for potential recruits is around the culture of the environment, the setting, the people that they would be working with,” he says. “There’s a hierarchy of priorities: culture, strategy, and then money.”
In today’s market, PE firms must prioritise culture alongside compensation to attract leaders who can drive exceptional growth.
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