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THE BEAM // Special Edition: Private Equity 1.1

Renewed Attention on Talent in Private Equity Firms

Instead of buy and sell or buy and hold, private equity firms are shifting to a buy and transform model. This strategy requires much more hands-on leadership and because of that many PE firms are increasingly focusing on talent and the critical role it plays. For many firms, this enhanced focus is manifested through the creation of a new role referred to as a leadership capital partner (LCP).

Harvard Business Review spoke with 30 LCPs to better understand the role they play and published their findings in an article titled, “PE Firms Are Creating a New Role: Leadership Capital Partner.” They found that although the specific mandate of an LCP varies, they often serve a dual role, first evaluating the talent, culture and leadership of the PE firm, then doing the same for the portfolio companies.

In our work, we have seen first-hand the tremendous value having a concentrated focus on talent brings to an organization. If your PE firm doesn’t have an LCP, we would strongly encourage you to partner with a trusted resource that can help you find and develop the talent needed to drive transformation.