Why private equity funds are hiring dedicated deal sourcers
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Daniela Braemisch, Head of Frankfurt, shared insights with Finance Magazin on the growing importance of dedicated deal sourcers in private equity and why origination has become a decisive competitive factor for funds.
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"Would we have even seen the deal without the deal sourcer?"
Deal sourcing as a competitive edge in private equity
As competition intensifies and attractive targets become harder to secure, deal sourcing is moving to the top of private equity agendas, reshaping how funds think about origination, talent and incentives.
Daniela Braemisch, Head of Frankfurt, notes that funds are increasingly investing in dedicated deal sourcers as origination gains strategic importance. “We have been commissioned significantly more frequently by funds to search for suitable deal sourcers for at least twelve months now,” she says.
Daniela Braemisch, Head of Frankfurt, notes that funds are increasingly investing in dedicated deal sourcers as origination gains strategic importance. “We have been commissioned significantly more frequently by funds to search for suitable deal sourcers for at least twelve months now,” she says.
Daniela identifies three main drivers: a persistently challenging deal environment, rising competition in the German PE market, and the heavy workload within portfolio companies, meaning that “active networking to generate new deals often falls by the wayside.” Dedicated deal sourcers help funds “enter into dialogue with a potential seller, ideally before they even know that they want to sell.”
Demand spans a wide range of funds, particularly those managing €1 billion or more, as well as smaller, founder-led firms and London-based funds from €500 million. However, not everyone is suited to the role. “We are looking for candidates who already have a good reputation in the market, typically more experienced professionals or seniors with ten or more years of professional experience.” Networking is not enough; candidates must combine strategic thinking with empathy and sales skills.
Moving into a pure sourcing role means stepping away from execution. “You have to want that,” Daniela emphasises. Compensation remains competitive: “The role is valuable and will likely play an even bigger role in the future. That’s why networkers are compensated like investment professionals.” Carry is usually handled individually, with “all deals initiated by the deal sourcer that make it to the investment committee…credited to the networker’s account.”
While some investors question the handover between sourcer and deal team, Daniela’s response is clear: “Would we have even seen the deal without the deal sourcer?”
Demand spans a wide range of funds, particularly those managing €1 billion or more, as well as smaller, founder-led firms and London-based funds from €500 million. However, not everyone is suited to the role. “We are looking for candidates who already have a good reputation in the market, typically more experienced professionals or seniors with ten or more years of professional experience.” Networking is not enough; candidates must combine strategic thinking with empathy and sales skills.
Moving into a pure sourcing role means stepping away from execution. “You have to want that,” Daniela emphasises. Compensation remains competitive: “The role is valuable and will likely play an even bigger role in the future. That’s why networkers are compensated like investment professionals.” Carry is usually handled individually, with “all deals initiated by the deal sourcer that make it to the investment committee…credited to the networker’s account.”
While some investors question the handover between sourcer and deal team, Daniela’s response is clear: “Would we have even seen the deal without the deal sourcer?”
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