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After the Storm: Competing for Talent in the Reset
by Eric Walczykowski, Adam Boone
In Part 1 of our Talent Perfect Storm update, we explored how the recent Federal Reserve rate cut has shifted private equity sentiment. Deal flow is accelerating, IPOs and sponsor-to-sponsor transactions are returning, and strategic acquisitions are gaining momentum. But as optimism builds, the backlog of more than 12,500 U.S. portfolio companies ensures that leadership demand will remain exceptionally tight for years to come.
As we turn from the macro environment to the execution challenge, we explore how sponsors can compete for scarce executive talent at the very moment when timing matters most.
Last week, we published an analysis of the rising momentum in a new edition of our Private Equity Talent Market Update for the Software and SaaS sector. Get your copy here. You can hear further analysis of the trends in our episode of Tailored Talent broadcasting on the LinkedIn Live platform.
Velocity Is Mission Critical
The storm may have passed, but the aftermath is defined by intensity. More than 12,500 U.S. portfolio companies are now backed by private equity, and thousands are overdue to exit as soon as possible. At the same time, executive turnover remains at historic lows, meaning the natural churn of leadership talent that normally accompanies exits has been muted. This backlog has created a perfect setup: demand is climbing sharply while supply remains constrained.
In this environment, waiting even a single quarter to begin a search means losing the best executives to competitors already in the market. Search velocity — the ability to launch, conduct, and close leadership searches with precision and speed — has become a decisive competitive advantage. The sponsors moving quickly, with clarity and urgency, are the ones consistently landing transformative leaders.
Visibility Across the Entire Market
Sponsors relying only on internal networks often see just a sliver of available executives — typically 15–20 percent. That’s no longer sufficient in today’s environment. Bespoke Partners’ Executive Index provides a complete, top-down view of nearly 700,000 software executives in North America who have operated in PE-backed environments. With more than 500,000 data sources and AI-driven curation, our accuracy in finding the right executive for a given scorecard has risen to more than 90 percent.
This level of visibility transforms the search process, surfacing not just proven veterans but also high-potential step-ups and adjacent market leaders who can deliver on value creation plans.
Conversion as the Differentiator
Even with visibility, one challenge remains: engagement. In today’s hyper-tight market, executives are inundated with calls, inMails, and messages. Conversion rates, whether those leaders will take your call and seriously consider your opportunity, are what separate success from delay.
Typical industry engagement rates hover around 50 percent. Bespoke achieves 84 percent, a direct result of the trusted relationships we’ve built over more than 15 years in private equity portfolio recruiting. That engagement advantage compresses timelines and ensures our average close time is just 75 days.
Compensation trends illustrate the pressure. Average C-suite on-target earnings climbed above $500,000 in 2023, continuing an upward trajectory even as growth slowed.
Sponsors are still willing to pay premiums for the leaders most critical to scaling and preparing for exit, making conversion rates and trusted recruiter relationships all the more important.
Roles That Move the Needle
As deal pipelines reopen, sponsors are sharpening their focus on roles that most directly impact exit outcomes. CFOs who can execute M&A and drive cost optimization are in demand, especially in take-privates where benchmarks call for 15–20 percent cost savings in the first 18 months. GTM leaders are being hired earlier, with 69 percent of companies in the $51M–$100M range now having a CRO in seat, up from 54 percent in 2023. Chief Product Officers are also rising fast, with their prevalence in growth-stage firms roughly doubling in just two years.
These shifts underscore a broader trend: sponsors are no longer waiting until scale to bring in seasoned executives. They are installing C-suite leaders earlier, aligning team composition with exit readiness and next-hold scalability.
The Science and the Art
The market reset has made executive talent more central than ever to value creation. Winning now requires a balance: the science of data-driven visibility and the art of trusted recruiting relationships. Together, they ensure sponsors secure the leadership needed to maximize exits and launch new platforms.
Looking Ahead
The private equity sector is entering a new cycle of acceleration. Exits are reopening, pipelines are filling, and leadership demand is surging. The sponsors who succeed will be those who move quickly, leverage a holistic view of the talent market, and partner with search experts who can convert opportunities into results.
For deeper insights, download the 2H2025 Software & SaaS Talent Market Update and watch Part 2 of Tailored Talent here:
Winning Results
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