Bespoke Partners, the leading retained executive search and leadership advisory firm for software companies, released its 2H2024 Talent Market Update Report offering new insights into executive recruiting trends in the dynamic economic climate.
“Extended hold periods and valuation gaps have been slowing exits, making strong leadership critical for driving growth in uncertain times.”
Available now, the new edition of the Private Equity Talent Report focuses on executive recruiting trends in private equity-backed software and SaaS companies, including executive compensation, equity packages and turnover rates.
The report is based on Bespoke’s extensive experience with hundreds of portfolio companies and private equity sponsors. It highlights how leadership demands are evolving in light of extended hold periods, valuation gaps, and cautious optimism in deal activity.
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“The recent US interest rate cut offers some hope for renewed deal activity, but market complexities remain,” said Eric Walczykowski, Bespoke Chief Executive Officer. “Extended hold periods and valuation gaps have been slowing exits, making strong leadership critical for driving growth in uncertain times.”
The 2H2024 report uncovers three primary trends shaping the private equity talent market:
- Go-to-Market and CEO Turnover: Turnover remains elevated in key roles tied to revenue generation, particularly among Go-to-Market leaders. CEO turnover has also returned to historical higher levels after a period of relative stability.
- Compensation Trends: The tight labor market continues to drive elevated compensation packages for high-demand executive roles.
- Optimism in Exit Valuations: There’s a renewed sense of optimism around exit valuations, as indicated in equity packages negotiated in recent executive placements.
As part of an ongoing series, this update provides valuable insights for private equity firms as they navigate the complexities of leadership transitions and prepare for future exits in a changing economic environment.