Altrata Finds 87% of US Portfolio Company Execs Previously Worked in Tech, Business Services or Financial Services

Altrata's latest report highlights the evolution of PE portfolio talent, including the backgrounds and experience found in the leadership pool.

NEW YORK, Feb. 20, 2025 /PRNewswire/ -- Altrata, a leading provider of executive intelligence, is pleased to announce the release of its latest thought leadership report, Portfolio Company Talent 2025. This comprehensive study examines the shifting landscape of leadership within private equity-owned (PE) portfolio companies across five major markets: the US, UK, Canada, Germany, and France.

In today's complex and highly competitive market, the evolving nature of value-creation strategies means PE firms are increasingly seeking a broader range of competencies for leadership team roles. The report emphasizes that firms capable of identifying, hiring, developing, and retaining top talent stand to benefit significantly in driving the performance of their portfolio companies and achieving profitable exits.

The individuals in these roles also possess valuable connections that enhance the PE firm's capabilities in recruitment, due diligence, and business development.

Key findings from the report include:

• External Appointments: More than 70% of current leadership team members in U.S. portfolio companies were external appointments, contrasting with publicly listed companies, which favor internal promotions for senior roles. This external hiring trend in the U.S. has declined by more than 10 percentage points in 2014, from 83%.
   
• Sector Experience: Previous senior-level experience in technology, business services, finance and private equity is common. 54% of U.S. portfolio company leaders have prior experience in the tech sector, followed by 30% in business services and 25% in financial services.
   
• M&A Expertise: A significant proportion of U.S. portfolio company CFOs and CEOs possess mergers and acquisitions experience. Specifically, almost two-thirds of CFOs have buy-side or sell/target-side M&A experience, with a slightly smaller share among CEOs. Nearly a quarter of current U.S. portfolio company CFOs have experience taking a company public.
   
• Educational Background: Almost half of U.S. portfolio company CFOs hold an MBA, the highest share among key C-suite roles. Harvard University and the University of Pennsylvania are notable institutions contributing to the education of these leaders.
   
• Age and Tenure: CEOs at US-owned portfolio companies have been in their current role for an average of 5.4 years, far longer than other C-suite roles. The report also shows the average age of leadership team members has risen to 54 in the US, up from 48 a decade ago.

This report highlights the critical role of leadership teams in driving portfolio company performance and delivering a profitable exit. Altrata's Portfolio Company Talent 2025 offers a unique perspective on the senior executives steering these companies, making it an essential read for firms looking to enhance their leadership frameworks.

Access the full report here.

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SOURCE Altrata