Investing in leadership is often a long-term and resource-intensive endeavor. It’s no surprise, then, that private equity – a notoriously short-term and cost-conscious industry – has often neglected talent development.
Why this needs to change
Longer holding periods and higher carrying costs increase pressure on private equity firms to generate higher operating returns from portfolio companies. This will require more effective leaders.
Private equity firms should hire and empower their human capital partners, create and execute a talent playbook, evaluate talent more systematically during trading, and encourage portfolio companies to make leadership development a more priority. high.