Why LPs are attracting more private markets talent
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Charlie Hunt, Managing Director, recently spoke to Top1000funds about the changing private markets talent landscape, including the growing appeal of LP roles, demand for specialist secondaries and co-investment expertise, and the increasing focus on value creation.
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Charlie's profile
Growing appeal of LP roles
A slowdown in private equity fundraising and reduced carry payouts are making opportunities at pension funds and other institutional investors increasingly attractive to experienced private markets professionals.
Reflecting on activity across the market, Charlie says, “Our LP practice has had a brilliant year,” with greater stability, predictable salaries and the absence of fundraising responsibilities contributing to the appeal of LP roles.
“Many GPs are doing well and hiring, but some are finding market conditions challenging. Not all carry schemes will pay out, so people are looking to move on. Fundraising is not easy at the best of times, and some funds have been restructuring their teams,” he explains. “Pension funds don’t pay as much as a GP, but they still pay well. No one is going to starve.”
Reflecting on activity across the market, Charlie says, “Our LP practice has had a brilliant year,” with greater stability, predictable salaries and the absence of fundraising responsibilities contributing to the appeal of LP roles.
“Many GPs are doing well and hiring, but some are finding market conditions challenging. Not all carry schemes will pay out, so people are looking to move on. Fundraising is not easy at the best of times, and some funds have been restructuring their teams,” he explains. “Pension funds don’t pay as much as a GP, but they still pay well. No one is going to starve.”
Specialist skills remain
in demand
Despite a quieter market overall, demand for professionals with fund, co-investment and secondaries experience remains strong. These areas require distinct skill sets, particularly around portfolio evaluation and GP and LP relationships.
As Charlie explains, “Secondary investors are talking to the GPs and LPs who are looking for liquidity, not the underlying portfolio companies,” highlighting the different expertise required within the secondaries market.
As Charlie explains, “Secondary investors are talking to the GPs and LPs who are looking for liquidity, not the underlying portfolio companies,” highlighting the different expertise required within the secondaries market.
Value creation drives hiring
Value creation is another area driving recruitment as investors focus more heavily on improving the performance of portfolio companies.
“Investors can’t rely on financial engineering or ever-increasing EBITA to exit. They are having to really improve companies even more than they used to, and hiring is now being driven by recruiting a bank of experts who are put into a company as needed to overhaul aspects like digitisation, cost optimisation or supply chains,” Charlie says.
As the private equity market continues to evolve, these shifts are creating new opportunities for LPs to attract experienced talent, while specialist expertise across funds, co-investments, secondaries and value creation remains in demand.
“Investors can’t rely on financial engineering or ever-increasing EBITA to exit. They are having to really improve companies even more than they used to, and hiring is now being driven by recruiting a bank of experts who are put into a company as needed to overhaul aspects like digitisation, cost optimisation or supply chains,” Charlie says.
As the private equity market continues to evolve, these shifts are creating new opportunities for LPs to attract experienced talent, while specialist expertise across funds, co-investments, secondaries and value creation remains in demand.