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PE Portfolio Talent Strategy: What's Driving Executive Moves in 2025
June 1, 2025
Private Equity (PE) is orchestrating a fundamental shift in portfolio company leadership, with the implications reshaping organisations and C-suites across industries. As PE firms continue to adjust to a rapidly changing business landscape, their leadership strategies are evolving to meet new challenges and opportunities.
The Strategic Imperative
With uncertain exit timelines and valuations under increasing scrutiny, private equity owners are making decisive talent moves to position their assets for the next phase of growth.
Many portfolio companies have been held for longer periods, and the need to be “investor-ready” requires an executive team that is future-focused, energised, and able to deliver tangible impact. The shift from traditional leadership to growth-driven teams has become a central component of these strategies.
Critical Talent Trends
- Growth Acceleration Leadership: A major trend is the systematic replacement of leadership with growth-focused executives. As many portfolio companies have struggled to maintain growth momentum, PE firms are prioritising leaders who have a proven track record in scaling businesses. These executives are expected to accelerate growth and drive value, positioning their companies for the next stage of development.
- Founder Transition Management: The founder-to-professional management transition is accelerating. PE owners are proactively bringing in seasoned operators to complement or replace founding teams, particularly where technical founders require complementary commercial and operational expertise. These decisions, which were delayed in the aftermath of COVID, are now seen as critical to ensuring long-term success.
- Technology & Digital Transformation: Another significant trend is the wholesale upgrading of technology leadership. The demand for Chief Digital Officers, Chief Data Officers, and AI-focused Chief Technology Officers is at an all-time high, as PE firms recognise that digital capability is a critical driver of growth and valuation increases. As businesses continue to expand, having strong technological leadership in place will be essential for navigating complex digital landscapes.
- The Customer-Centric Shift: Revenue leadership is being redefined. Traditional sales leadership roles are being supplemented or replaced by customer success veterans, growth marketing specialists, and revenue operations experts who have a deep understanding of modern B2B buying dynamics, digital channels, and how to leverage data for growth. This shift is designed to ensure that portfolio companies not only meet current market demands but also drive future revenue through customer-first strategies.
What This Means For…
- Executives: Portfolio company leadership roles now offer accelerated career progression but come with intense performance expectations. Executives stepping into these roles must deliver fast, tangible results and adapt quickly to changing priorities.
- Portfolio Companies: The influx of new talent brings fresh perspectives and proven playbooks to drive success. However, cultural integration remains a challenge. Ensuring alignment between the new leadership team and existing employees is critical for success.
- The Broader Market: The talent movement creates a multiplier effect across the broader market. The best and most experienced executives from listed companies or multinational corporations are becoming the next generation of leaders within portfolio companies, contributing to a more competitive talent landscape.
How Our PE Team Can Help
At Derwent, our expert team of consultants and researchers are dedicated to helping you navigate these shifts. Whether you’re looking to discover growth-driven leaders, integrate technology experts, or realign your leadership strategy, we can partner with you to ensure your leadership team is positioned for future success.
If you're ready to understand how these trends will shape your leadership strategies or want to explore how we can help your portfolio company succeed,
Contact Us
or connect directly with
Ben Derwent
,
Simon Holloway
, or
Rebecca Harper
today.
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