PE-CXO/Falcon’s Nine Dimensions of Governance Fit® provides a framework that can help sponsors and executives ensure a successful partnership.
Exclusive insights provided by more than 1,000 sponsor-backed executives helped to identify the top 50 private equity funds whose governance style, engagement, and fit are seen as best enabling their portfolio company executives to succeed.
CLEVELAND–(BUSINESS WIRE)–PrivateEquityCXO (PE-CXO), the world’s largest community of private equity-backed executives, in collaboration with Falcon Partners, a recognized executive search firm exclusively serving private equity, today released the inaugural Top 50 Private Equity Firms for Executives Report. The data-driven findings include a framework known as The Nine Dimensions of Governance Fit®. This framework enables both executives and sponsors with a strategic and intentional framework by which to assess fit at a level that can better predict successful outcomes.
“The supply/demand trend continues to worsen in the PE marketplace, thereby making a competitive talent pool even more daunting. Elite executives will be diligent and selective in choosing the right opportunity and optimal sponsor fit.”
The report reveals a host of instructive findings available in the full report. Among these insights, 56% of executives would gladly pursue another deal with sponsors who lead with transparency and pragmatism. Only 16% of respondents who felt their sponsor failed to partner with management said they would be willing to return to their former sponsor, while 97% of executives who felt aligned with their sponsor reported being willing to work with them again.
This report’s findings are timely: an unrelenting, decades-long increase in PE dealmaking has resulted in unprecedented demand for C-suite portfolio company executives. “The supply/demand trend continues to worsen in the PE marketplace, thereby making a competitive talent pool even more daunting. Elite executives will be diligent and selective in choosing the right opportunity and optimal sponsor fit,” said Cori Finefrock Audey, VP of PE-CXO.
Rob Huxtable, Partner, Falcon, added, “Aligned interests are a hallmark of private equity. Yet the key findings of this report show there is a significant opportunity for sponsors and executives to ensure that cohesion is better prioritized. The Nine Dimensions of Governance Fit® introduced in this report can serve as a framework for sponsors and management when conducting mutual diligence ahead of key hiring decisions, or when seeking performance improvement.”
The findings of the report are based on a survey of more than 1,000 private equity-backed executives in the U.S. conducted from July 2022 – December 2022, as well as interviews with numerous experienced portfolio executives. This research is just one of many ways PE-CXO is working to ensure the future of private equity by growing and strengthening the population of elite PE operators. To access the full report, click here.
About Falcon Partners
Falcon Partners LLC (Falcon) is a leading retained search firm with an exclusive focus on serving private equity firms and their portfolio companies. Falcon conducts searches for platform company CEOs, CFOs, Heads of Revenue, and other mission critical C-Level assignments. The firm also executes fund-level mandates for Operating Partners and Operating Executives. Falcon’s mission is to ensure its clients and candidates have a competitive talent advantage in the pursuit of value creation. For more information, visit falcon-pe.com.
About PrivateEquityCXO (PE-CXO)
PrivateEquityCXO is a digital membership community offering content and playbooks that help PE-backed executives drive MOIC. The platform also provides ‘rising stars’ with an accelerated pathway to their first private equity-backed CXO role. The platform provides sponsors with curated access to talent while providing executives with the resources to optimize their careers and create generational wealth. For more information, visit privateequitycxo.com.