Private Equity and the Executive Search Surge: What PE Firms Want

In 2025, private equity (PE) is navigating a paradox: record levels of uninvested capital—now hovering around $1.2 trillion, according to Bain’s 2025 Global Private Equity Report—coupled with slower deal flow. Nearly a quarter of that capital has remained idle for over four years, intensifying pressure to deploy it wisely.

At JW Michaels, we’re seeing a shift firsthand. PE firms aren’t just looking for seasoned operators—they’re looking for transformational leaders. Executives who are digitally fluent, operationally sharp, emotionally intelligent, and strategically agile. Here’s what’s driving that demand—and how the executive search landscape is adapting.

From Financial Engineers to Operational Builders

With interest rates cooling but still unpredictable, and geopolitical factors like tariff volatility triggering deal slowdowns, strategic operations have taken center stage. The era of “buy low, flip fast” is fading. The new PE playbook requires executives who can drive EBITDA through operational improvements, digital modernization, and integration of add-on acquisitions—which now account for nearly 75% of U.S. private equity deal activity.

PE firms are targeting CFOs, COOs, and Chief Digital or AI Officers who can roll up their sleeves and lead change from the inside. ERP modernization, AI-powered forecasting, and RevOps have become foundational to portfolio strategy execution. In today’s deal environment, where value creation must often come from within, these tools enable faster decision-making, deeper visibility, and measurable performance uplift.

While precise gains vary, private equity firms increasingly report that these initiatives drive meaningful EBITDA improvement—particularly when aligned with broader transformation efforts and implemented within the first 12–18 months post-close. As operational excellence replaces financial engineering as the primary lever for growth, these capabilities are no longer optional—they’re expected.

The New PE Executive: Hybrid, Hands-On, High Impact

Today’s ideal PE-backed executive is a hybrid athlete—grounded in finance, fluent in technology, and capable of building high-performing teams in dynamic environments.

They bring:

• AI and digital fluency to activate data, automate reporting, and identify growth levers.
• Operational depth to drive integration, margin expansion, and process efficiency.
• Soft skills like empathy, adaptability, and communication—crucial in hybrid, high-pressure settings.
• A long-term mindset focused on sustainable value, not short-term optics.

Firms must move beyond résumés and references. Cultural fit, learning agility, and leadership presence are now central to executive assessments.

C-Suite Roles in Focus

To meet today’s expectations, PE firms are building a more specialized and forward-looking C-suite. Roles on the rise include:

• Chief AI Officer / Chief Digital Officer – To drive enterprise-wide automation, data strategy, and innovation.
• CFO / COO / CRO – As operational architects who link capital strategy to EBITDA growth and scale.
• Privacy Attorneys, CLOs, and RegTech Directors – To navigate mounting ESG, data privacy, and compliance demands.
• CHROs – To lead organizational culture change, implement hybrid workforce models, and strengthen employee experience.

These aren’t back-office functions. They’re strategic levers—and the difference between a good exit and a great one.

Winning the Talent War: What PE Firms Should Do Next

Attracting and retaining transformational executives in today’s market requires more than compensation. It demands clarity, customization, and commitment.

Here’s what we recommend:

1. Redefine executive profiles with precision—align digital, operational, and interpersonal traits to business goals.
2. Tailor compensation to balance long-term equity upside with short-term retention and risk management.
3. Invest in leadership development to close skill gaps and future-proof key roles across the portfolio.
4. Design intentional hybrid models that support flexibility without sacrificing culture or accountability.

Final Word

Private equity’s operating model has changed—and so has the leadership profile required to drive results. In this environment, talent is the value lever. The firms that identify and empower transformational leaders—early, thoughtfully, and decisively—will win.

At JW Michaels, we’re not just watching the shift. We’re helping our clients lead it. Let’s talk about how we can help you secure the leadership needed for your next phase of growth.