Private Equity Talent Outlook: Q1 Reflections and Q2 Priorities
Q1 2025 has set the pace for what we believe will be a transformative year for private equity. We’ve worked with leading firms across the UK, Netherlands, France, and the UAE, who are embracing flexible hiring models, expanding functional expertise, and prioritising finance leadership to maximise value creation from increasingly complex portfolios.
Q1 2025 Market Themes: Deal Volume, Complexity and Talent Implications
Deal Activity Rises with New Complexity
Global private equity deal activity saw a notable increase in Q1 2025, driven by strong performances in the technology and healthcare sectors, more favourable credit conditions, and revived exit strategies (Dealmaker's Snapshot: M&A Trends & Insights for Q1 2025). Although deal volume remains below pre-2022 levels, the size of transactions has risen significantly, with 77% of global buyout value in 2024 coming from deals exceeding $1B.
As deal complexity intensifies, particularly in public-to-private deals and carve-outs, firms are sharpening their focus on value creation through asset optimisation. This has led to increased demand for senior talent with the capability to lead transformation in fast-moving, tech-enabled environments.
Finance leadership at the forefront
One of the most significant developments this quarter has been the increasing involvement of CFOs in shaping firm-wide strategy. These professionals are embedded in decisions around investment priorities, value creation, and operational improvements. Currently, a high percentage of portfolio CFOs are appointed post-deal, and most private equity-backed businesses cycle through two CFOs during a typical five-year hold.
This has driven rising demand for interim finance leaders with expertise in:
ERP implementations, upgrades, consolidations
Carve-outs and post-deal integration
Cost restructuring and capital strategy
Legacy ERP systems remain a common challenge in private equity. In the past, they were either addressed immediately post-acquisition or deferred indefinitely, but that’s changing. With suppliers now pushing cloud adoption and on-premise support being phased out, firms can no longer delay.
This urgency aligns with longer hold periods and an increased focus on value creation through people, processes, and technology. As a result, we expect a significant uptick in ERP transformation programmes over the next 12–18 months.
From Generalist to Specialist Teams: The Evolving Operating Model
As deal activity accelerates, firms rely on interim and contract talent to lead transformation. This has brought talent strategy to the forefront of client priorities and conversations.
We’re seeing a clear shift from generalist operating partners to highly specialised functional experts. Across markets—from digital and data to GTM and ESG, firms are seeking deeper capability in targeted areas.
Today’s operating partners are expected to pair leadership experience with the technical tools and frameworks needed to deliver measurable impact. Whether developing pricing models, streamlining supply chains, or advancing ESG reporting, one thing is clear: generic approaches no longer deliver.
Interim and Contract Talent as a Core Strategy
As market volatility persists, the need for speed, agility, and flexibility has driven a surge in interim and contract hiring. From interim finance directors and transformation leads to compliance and systems specialists, firms are tapping into project-specific talent that delivers immediate results.
There is a broader recognition that short-term hiring can be highly strategic. It reduces risk, controls costs, and allows firms to test new roles or capabilities before making permanent investments. We’ve worked with firms across London, Amsterdam, Paris, and Dubai to source this talent quickly and efficiently, helping firms move from planning to execution.
Direct vs. Fund-Based Strategies: Talent Implications
While both direct and fund-based private equity strategies remain prevalent, there’s a noticeable shift towards direct investments. These investments allow firms to apply more tailored operational strategies and exert greater control over outcomes, influencing their talent strategies.
Firms pursuing direct strategies are:
Hiring in-house talent operating partners
Building internal leadership teams
Engaging talent advisors earlier in the investment lifecycle
Conversely, fund-based strategies continue to be crucial, particularly for risk mitigation and diversification in uncertain macroeconomic conditions.
Q2 2025 Priorities for PE Hiring Managers
In Q2 2025, private equity firms and their portfolio companies face a landscape of guarded optimism and intensifying activity. Deal pipelines are healthy, and many anticipate that dealmaking and exits will further accelerate as interest rate cuts become more likely in the back half of the year. Our outlook for Q2 is that the market will continue on its recovery trajectory.
Key hiring priorities for Q2:
With a focus on specialist operating partners and an increase in talent operating advisors, direct fund investments will likely take a more hands-on approach to talent.
Investment in finance infrastructure and leadership will continue. CFOs and senior finance professionals will continue to take centre stage. ERP specialists will be highly sought after.
Flexibility and speed in hiring will remain a priority. Interim and contract talent will remain key to respond to market shifts.
Private equity is evolving. The most successful firms are those that move quickly, act decisively, and tailor their approach to the unique challenges of each asset.
At inicio talent, we’re proud to partner with firms who see talent as a value creation tool.
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