How can I get, and keep, an executive job at a PE-backed firm?
Today’s executives are much more likely to end up at a private equity-backed company than in 2000.
This shift means that the landscape of leadership is evolving quickly, especially for those new to a PE-owned environment. If you’re interviewing for an executive role in a PE-backed firm—or transitioning into one—you’ll need to adjust your approach, both in interviews and in day-to-day leadership.
Let’s dive into what makes PE-backed firms unique and how you can prepare yourself to thrive.
Private Equity Firms are Changing Corporate America
In 2000, only 4% of U.S. companies were PE-backed.
Today? Over 20% of the economy is owned or partly controlled by private equity.
Private equity firms acquire companies, consolidate them, and ultimately seek a profitable exit within a few years. For executives stepping into these firms, that means every role, strategy, and decision has a high-stakes purpose, and long timelines just don’t fit.
Here’s what you need to know about the PE way of working, and how to adjust your interview style to get the job - and your leadership style to succeed in this environment.
1. It’s ALL About Results
PE investors prioritize high-impact, immediate performance. The goal isn’t a 10-year vision but results that drive toward an exit in the near-term.
How to Interview: Talk about delivering rapid results, boosting multiples, and creating scalable systems. Frame your experience around outcomes that investors can recognize and quantify.
How to Lead: Emphasize near-term execution over far-off innovation, and focus on transformations that will make the company more valuable at the time of sale.
2. Financial Discipline Is Key
In a PE-backed environment, every dollar is scrutinized. Budgets aren’t just reviewed—they’re examined for immediate ROI.
How to Interview: Highlight your experience managing expenses, controlling budgets, and improving margins. Emphasize how you prioritize spending on high-ROI activities.
How to Lead: Adopt a zero-sum approach to budget management. Every expense should be justified, and any request for growth or productivity investments must come with a clear, data-backed case.
3. Speed Is Essential
PE firms work on accelerated timelines. Their goal is to see strong, steady returns, and quickly.
How to Interview: Share examples of how you’ve made bold yet timely decisions that delivered results. Show that you’re comfortable operating at a fast pace.
How to Lead: Assimilate quickly. There’s no long runway for onboarding. Focus on strategic, fast decision-making, and stay agile enough to adapt plans in real time.
4. Your Presentation Skills Matter
PE investors expect polished, honest, and frequent updates. You’ll be regularly presenting results, goals, and performance metrics.
How to Interview: If you’re asked to present as part of the interview, make sure it’s polished, practiced, and data-rich. PE firms look for presentation skills that inspire confidence and clarity.
How to Lead: Be ready to present metrics at any time. Keep a “constant presentation” mentality, ready to walk through progress and projections whenever needed. This transparency and confidence will build trust with investors.
5. Data-Driven Leadership Is Essential
PE investors are deeply focused on metrics and measurable outcomes. Every strategy, every initiative, every project is backed by data.
How to Interview: Layer data into every story. Quantify your impact, so the numbers tell your story.
How to Lead: Reinforce every decision with data, and keep key metrics at your fingertips. Talking data will solidify trust in your leadership and help you align with the firm’s high-stakes goals.
6. Lead Cultural Change with Empathy
PE culture emphasizes high performance and efficiency, and you’ll need to drive results with a team that’s adapting to the same high expectations.
How to Interview: Share examples of how you’ve elevated performance and implemented scalable processes in prior roles. Show that you understand the balance of supporting high-performance teams.
How to Lead: Lead by example with support and empathy. A PE-backed environment asks people to do more with less, so build a culture of collaboration, empowerment, and rapid decision-making to help your team keep up.
The Big Picture
Joining a PE-backed firm can be a transformative experience, full of potential for both personal and financial growth. You’ll gain invaluable skills in financial management and high-stakes execution. And if everything goes well, you might even see a significant payoff when the firm exits.
But remember, PE leadership is a different style of interviewing, and a different style of working. It’s fast-paced, data-driven, and focused on immediate impact. So, adapt your interview approach and leadership style to fit the unique demands of PE culture. With the right adjustments, you can thrive in this challenging and rewarding environment.