Private Equity

Exec Capital is a specialist executive recruitment firm with a dedicated private equity practice. We recruit across two distinct requirements — within PE funds themselves, placing investment professionals, operating partners and fund leadership; and within PE-backed portfolio companies, where we place the C-suite and senior leadership needed to deliver the operational improvement and value creation that determines investment returns. Both mandates require a different approach to search, and both are areas where Exec Capital has a sustained track record across permanent, interim and fractional engagement models.

Private equity-backed businesses span every sector of the UK economy, and their trade body, UK Private Capital (formerly the BVCA), represents the funds that invest in them. The volume of C-suite hiring activity across this portfolio — particularly at CEO, CFO and COO level — makes PE one of the most active and demanding segments of the UK executive recruitment market. The Invest Europe European Private Equity Activity statistics track buyout, growth and venture investment across Europe, and the UK remains one of the most active private equity markets on the continent, which keeps executive hiring demand steady across the cycle.

PE Firm Hires and Portfolio Company Hires Compared

Most enquiries we receive under the private equity heading fall into one of two groups, and it pays to be clear which one you are in before a search starts. A hire into the fund manager is judged on deal judgement, sector conviction and how well the person fits a small partnership. A hire into a portfolio company is judged on whether the person can deliver the value creation plan the sponsor underwrote, inside the hold period, while reporting to a board that includes the investor. The candidate pools overlap only at the edges, the assessment is different and so is the way the role is pitched to candidates.

If your requirement is a single leadership role in a portfolio business and you want a dedicated retained search, our private equity executive search page sets out how that process runs in detail. This page covers the whole practice, including hires into the fund manager, flexible appointments and board roles.

How Our Private Equity Recruitment Process Works

Every mandate follows the same sequence, whether it is an investment associate, a portfolio CFO or an operating partner. We agree the timetable with you at briefing, because the right pace depends on the role, the deal timetable and how confidential the search needs to be.

Portfolio Company Permanent C-Suite Recruitment

The most common and time-critical private equity recruitment requirement is the placement of permanent C-suite leadership within a portfolio company. These appointments typically arise at three points in the investment cycle: immediately post-completion, where the PE sponsor needs to strengthen the management team to begin value creation; mid-hold, where underperformance requires a change in leadership; and pre-exit, where the sponsor needs to build the management team that will present credibly to a buyer or IPO process.

Speed is critical. Sponsors consistently point to management quality as one of the biggest drivers of returns. Operational value creation begins from day one of a new executive appointment — a twelve-week process that delivers the wrong candidate is commercially damaging in a way that a corporate business can absorb but a five-year PE hold period cannot.

Value Creation, Operating Partners and Pre-Exit Leadership

Beyond the standard permanent C-suite appointment, PE sponsors increasingly rely on a wider set of value creation roles — operating partners embedded across the portfolio, value creation specialists for specific commercial or operational programmes, 100-day executives bridging post-completion gaps, and pre-exit CEO appointments where the team that will present to acquirers needs to differ from the team that operated through the hold period.

Industry research from Private Equity International and Preqin tracks the growing role of operating partners and operational value creation across private equity portfolios.

Fractional Engagements for PE Portfolio Companies

Fractional engagement models — where a senior executive operates across multiple days per month at the portfolio company without a permanent appointment — have become a standard PE recruitment requirement. They suit several situations: smaller portfolio companies where a full-time C-suite is not yet justified by scale; defined transformation programmes with a clear endpoint; bridging arrangements between a departing executive and the permanent replacement; and specific functional gaps within an otherwise strong management team. The fractional model gives PE sponsors flexibility on cost and commitment while accessing senior talent that would not be available at the portfolio company’s full-time compensation level.

Our sister practice FD Capital’s PE Fractional CFO practice specialises in fractional finance leadership for PE-backed businesses across the UK, and the Exec Capital and FD Capital networks operate in combination on portfolio CFO requirements.

Fractional and interim appointments also matter where a portfolio company is regulated. A sponsor that buys a consumer credit lender, an insurance broker, a wealth manager or a payments business inherits regulatory roles that cannot be left empty. For firms under the Senior Managers and Certification Regime, the Compliance Oversight (SMF16) and Money Laundering Reporting Officer (SMF17) functions remain pre-approved roles, so the candidate must be approved before taking up the function. A fractional chief compliance officer or fractional MLRO gives a smaller regulated portfolio company experienced cover for one or two days a week, while an interim CCO suits remediation work after a deal or an FCA visit. Payment and e-money institutions sit outside SMCR, but still need an MLRO under the Money Laundering Regulations and individuals the FCA accepts as responsible for management. See our fractional compliance officer service for how these appointments are structured.

For leadership roles that the sponsor wants filled on a part-time basis from the start, our fractional CEO service for PE-backed firms and guide to how fractional executives fit into PE-backed firms explain where the model works and where a full-time appointment is the better call.

Private Equity Fund Recruitment

Recruitment within the PE fund itself — for investment professionals, operating partners, fund leadership and board roles — requires access to a different candidate pool from portfolio company search. Investment professionals within PE funds are typically drawn from investment banking analyst and associate programmes, strategy consulting, or from within PE itself. Senior hires — Partner, Managing Partner, Chief Investment Officer — are almost always conducted through direct confidential search, since the pool of individuals with the right combination of deal track record, sector expertise and fund management experience is small and entirely passive.

The Institutional Limited Partners Association (ILPA) framework on fund governance influences expectations for fund-level appointments, particularly for senior investor relations and operating partner roles where LP engagement is part of the brief.

Investment team hires

Associate and vice president hires are usually the most competitive part of the market, because firms are recruiting from the same investment banking and consulting pools at the same time. A good process is clear about deal exposure, sector focus, the balance between execution and origination, and the route to investment director. We screen for modelling ability, diligence experience and judgement, and we are candid with firms about how their offer compares with what candidates are seeing elsewhere. Our private equity associate recruitment page covers this in more detail.

Operating partners and portfolio teams

Operating partners sit between the deal team and portfolio management. Some are former CEOs or CFOs who join boards and coach management; others run functional programmes across the portfolio, such as procurement, pricing, digital or talent. The brief must be clear on whether the role is advisory or hands-on, how it is rewarded and how much time is spent inside portfolio companies, because candidates will ask.

Firm leadership, finance and compliance

As firms grow, they hire for the management company as well as the funds: a CFO or finance director to run fund accounting, investor reporting and the firm’s own finances; a COO to own operations, technology and outsourced providers; investor relations and fundraising leads; and a compliance officer and MLRO. Most UK private equity managers are FCA authorised as alternative investment fund managers, so these senior roles are usually senior management functions under SMCR. Smaller managers often take compliance support on a fractional basis before the volume of work justifies a full-time hire.

Fund roles are rewarded differently from portfolio roles. Carried interest and co-investment form a significant part of the package for investment professionals, and the tax position changed from 6 April 2026, when the UK moved carried interest into a revised income tax regime. Our guides on how carried interest works in practice and co-investment and carry at PE firms explain the mechanics.

Private Equity Non-Executive Directors and Board Appointments

PE portfolio companies and PE-backed boards require non-executive directors with particular characteristics: prior board experience in a comparable PE-sponsored environment, sector expertise relevant to the portfolio investment thesis, and the capacity to work at the pace and intensity that PE board cycles require. Generic FTSE-style NED appointments rarely transfer well — PE boards meet more often, drive more closely on operational metrics, and demand a more hands-on engagement style than larger corporate boards.

Our sister practice NED Capital’s PE Non-Executive practice specialises in board and non-executive appointments for PE-backed businesses, and the two networks combine for portfolio NED searches.

What Private Equity Sponsors Need from Portfolio Company Executives

The executive profile that works in a PE-backed business differs materially from the profile that works in a comparable corporate or owner-managed business. PE sponsors are specific about what they require, and generic executive search that ignores this context produces poor results. The key differentiators are:

Prior PE portfolio experience. An executive who has operated in a PE-backed business understands the reporting cadence, the focus on EBITDA and cash, the relationship with the sponsor board, and the pace of decision-making that PE environments demand. Many excellent corporate executives struggle in this environment not because of skill deficits but because of cultural adjustment. In our experience, candidates with prior PE portfolio experience settle in faster and are more likely to succeed.

EBITDA accountability. PE portfolio executives are typically assessed against clear financial metrics — EBITDA growth, margin improvement, cash conversion, revenue per head. A CFO who has managed financial reporting without direct P&L accountability will struggle in a sponsor-backed environment where every reporting period is scrutinised against the original investment thesis.

Comparable scale and stage experience. A CEO who has led a £200m business is not automatically qualified to lead a £20m business preparing for a ten-times revenue growth plan. In our experience, scale-specific experience is a better predictor of success in a high-growth PE portfolio company than seniority alone.

Exit readiness. Where the hold period is approaching completion, the management team presented to a potential buyer or to the public markets must be credible at the level of the acquirer. This sometimes means refreshing leadership specifically for the exit — not because the incumbent CEO has underperformed, but because the exit process requires a different profile.

When to Hire Permanent, Interim, Fractional or Part-Time

Sponsors often know who they need before they know which format suits the situation. The choice depends on how long the need lasts, how much of the role is strategic versus operational, the size of the business and where it is in the hold period. The table below sets out how we usually think about it with clients.

Formats can also be combined. A common pattern is an interim CFO who stabilises reporting and the lender relationship after completion while the permanent search runs, or a fractional COO who leads an operational programme and hands over to a permanent appointment once the business has grown into the role. Where an interim or fractional leader is engaged through their own company, the off-payroll working rules (IR35) need to be considered at the outset. HMRC has confirmed that the raised company size thresholds have no practical impact for off-payroll working until 6 April 2027 at the earliest.

What a New Portfolio Executive Typically Delivers in the First 90 Days

Sponsors judge new leaders early. The first 90 days set the tone for the board relationship and usually decide whether the investment thesis still looks achievable. While every situation is different, a strong portfolio executive will usually have done most of the following by the end of the first quarter in post.

• Read the business against the thesis. Meet the management team, customers, key suppliers and lenders, and come back to the board with a clear view of where the investment case holds and where it is at risk.
• Fix the numbers the board relies on. For a CFO in particular, this means a reliable monthly pack, a 13-week cash flow forecast where cash is tight, covenant headroom and a reconciliation between management accounts and the deal model.
• Agree the priorities. Turn the value creation plan into a short list of initiatives with owners, milestones and measures, agreed with the sponsor rather than imposed on it.
• Assess the team. Decide who stays, who needs support and which gaps need filling, and start any further hires early, since they take time.
• Deliver early, visible progress. A small number of quick wins, such as pricing discipline, working capital improvements or a reduction in cost that does not damage the business, builds credibility with the board.
• Set the board rhythm. Establish the reporting calendar, KPIs and the tone of the relationship with the deal partner and operating team.

We discuss these expectations with candidates during the search, so the person appointed knows what the board will be looking for. Our guides on what PE firms get wrong in portfolio hiring in the first 100 days and executive onboarding in the first 90 days go into more detail.

Regulatory and Governance Framework for PE Executive Appointments

Several regulatory and governance considerations apply to executive appointments within PE-backed businesses:

FCA-regulated portfolio companies. Where a PE portfolio company is itself FCA-regulated — a financial services business, a consumer credit lender, an insurance intermediary — the SM&CR applies to senior management appointments. The FCA’s SM&CR guidance sets out the notification and approval requirements for prescribed senior management functions.

AIFM regulatory requirements. PE funds operating in the UK under the Alternative Investment Fund Managers Directive (AIFMD) are subject to FCA oversight for certain senior roles within the fund management entity.

Board governance. The Walker Guidelines on Transparency and Disclosure apply to larger UK PE-backed businesses and set expectations around board composition, reporting and oversight that affect the profile required for non-executive and board-level appointments.

SMCR approvals and timing. Where an SMF appointment is needed, timing matters as much as the candidate. Under section 61 of the Financial Services and Markets Act 2000, the regulator must decide a complete application within three months, and the clock stops while it waits for information it has requested. Since the SMCR changes that came into force on 24 April 2026, a firm that loses a senior manager unexpectedly can use temporary cover for up to 12 weeks while it submits an application. The FCA and PRA have since consulted on moving some senior manager functions to a notification basis, but the Compliance Oversight and MLRO functions are proposed to stay pre-approved. In practice, this means a regulated portfolio company should start a compliance or MLRO search as soon as a change is known about, and should consider fractional or interim cover to bridge the gap.

Fund managers and the FCA. Most UK private equity managers are authorised as alternative investment fund managers, which means their senior individuals sit within SMCR. A partner in an LLP manager, the person responsible for compliance and the MLRO all need approval before they start. Payment and e-money businesses in a portfolio sit outside SMCR, but the FCA still assesses the people responsible for management at authorisation and on change.

Disclosure for larger portfolio companies. The Walker Guidelines apply where a private equity firm acquires a UK company with an enterprise value above £500 million and either more than £200 million of revenue (with at least half generated in the UK) or more than 1,000 full-time equivalent employees in the UK. In-scope companies publish enhanced annual reports and identify the board, which raises the bar for chair and NED appointments.

Industry body. The BVCA renamed itself UK Private Capital in January 2026 to reflect the growth of private credit and other private capital strategies alongside buyouts and venture. References to the BVCA in older governance documents now relate to UK Private Capital.

Compensation and Package Structure

We do not publish salary or day-rate figures on this page, because PE packages vary widely with the size of the business, the stage of the hold and the size of the equity opportunity. What we can do is explain how packages are usually built, and our private equity salary guide gives sourced market data for clients who want it.

Portfolio company executives

• Base salary and bonus. Usually benchmarked against comparable sponsor-backed businesses of the same size and sector, with bonus tied to EBITDA, cash and plan delivery.
• Management equity. The main reason many executives join a PE-backed business. Senior hires are normally invited to invest in, or are awarded, ordinary shares that share in growth above the institutional strip, often described as sweet equity.
• Good and bad leaver terms. These decide what happens to equity if the executive leaves early and are often the most negotiated part of the offer.
• Buy-outs of existing awards. Candidates leaving listed businesses or other portfolio companies may forfeit unvested awards, which affects the cost and structure of the offer.

Fund professionals

Investment professionals are paid salary and bonus, with carried interest and co-investment rights making up a large part of long-term reward. From 6 April 2026 the revised tax regime for carried interest sits within the income tax framework: qualifying carried interest is treated as trading profits, with 72.5% of qualifying profits brought into charge. That change has made carry terms, vesting and co-investment a more prominent part of offer discussions, and candidates now compare packages more closely.

Interim and fractional executives are usually engaged on a day rate. The day rate we quote includes our fee, so there is one figure for the client to approve.

Engagement and Fees

We agree the fee structure with you at briefing, once we understand the role, the market and how the search needs to run. In outline:

• Retained search is our usual model for senior permanent roles in portfolio companies and for partner, CIO and operating partner hires at PE firms, where confidentiality and a full market map matter.
• Contingent recruitment can suit some mid-level roles where the candidate pool is easier to reach and the timetable is flexible.
• Interim and fractional appointments are charged on a day-rate basis, and the day rate we quote includes our fee.
• What is included: the briefing, market mapping, candidate approaches, assessment, referencing, interview coordination, offer and equity negotiation support, and contact through onboarding.

If you are weighing up the two main models, our guide to retained versus contingent executive search sets out when each fits.

Who We Place and Who We Work With

Our private equity work comes from a mix of investors and the businesses they back. Typical clients include:

• Mid-market and lower mid-market buyout firms hiring investment professionals or building an operating team
• Growth equity and private credit managers adding to their investment or portfolio teams
• Portfolio companies hiring a CEO, CFO, COO or commercial lead after completion, mid-hold or ahead of exit
• Buy-and-build platforms that need leadership able to integrate acquisitions
• Regulated portfolio businesses, such as lenders, brokers, wealth managers and insurers, that need SMF-approved leaders or compliance cover
• Family offices and other direct investors taking private equity-style stakes, alongside our family office executive search practice
• Management teams preparing for a buy-out or a secondary deal who need to strengthen the board

Sectors include business services, technology and software, healthcare, consumer and leisure, industrial and manufacturing businesses, and financial services. We do not name clients on our website; references from comparable mandates can be discussed during briefing.

Other Ways to Hire for Private Equity Businesses

This page is the overview of our private equity practice. If you already know the role and format you need, these pages go straight to it: portfolio company COO recruitment for operational leadership, interim CEO for PE-backed businesses for leadership cover, our pre-exit executive hiring guide for teams approaching a sale, and venture capital recruitment for earlier-stage investors and their portfolios.

Looking for a role? If you are an executive, investment professional or NED interested in private equity opportunities, please register with us and view our current opportunities. We are always keen to hear from people with sponsor-backed experience.

Frequently asked questions

What is private equity recruitment?

It is the hiring of senior people either into private equity firms (investment professionals, operating partners and firm leadership) or into the businesses those firms own (the CEO, CFO, COO and board). The two require different candidate pools and different assessment, and a good search firm will be clear about which one you need.

Do you recruit for PE firms or for portfolio companies?

Both. We place associates, investment directors, CIOs, operating partners and firm finance and compliance leads for fund managers, and C-suite, value creation and board roles for portfolio companies.

How is a portfolio company CFO different from a corporate CFO?

A portfolio CFO works to a sponsor’s timetable, reports monthly against the deal model, manages lender covenants and cash closely, and usually prepares the business for a sale or refinancing within the hold period. Prior experience of sponsor reporting and leverage is usually expected.

Can you provide interim or fractional executives for portfolio companies?

Yes. Interim leaders suit sudden departures, turnarounds and 100-day plans; fractional leaders suit smaller businesses that need senior input one to three days a week. Day rates include our fee.

How long does a private equity executive search take?

It depends on the role, the market and notice periods, so we agree the timetable with you at briefing. Notice periods for senior executives are often three to six months, which is one reason interim cover is common.

Do you recruit operating partners?

Yes. We recruit operating partners and portfolio team members for PE firms, and value creation executives who join individual portfolio businesses for a defined programme.

How is management equity handled in an offer?

We help sponsors and candidates agree salary, bonus and the equity offer, including sweet equity, vesting and leaver terms. Equity terms are set by the sponsor and its advisers; our role is to keep the negotiation on track and make sure the candidate understands the offer.

Does SMCR apply to PE hires?

It applies to most UK private equity managers, as they are FCA authorised, and to portfolio companies that are themselves FCA regulated. It does not apply to an unregulated trading business just because it is PE-backed.

What has changed now the BVCA is UK Private Capital?

Only the name. The industry body renamed itself in January 2026 to reflect the wider range of private capital strategies its members run. The Walker Guidelines and the Private Equity Reporting Group continue as before.

How do I start a private equity search with Exec Capital?

Use our tell us about your hire form or call 0203 834 9616. We will arrange a briefing call, agree the profile, format and fee structure, and set the timetable with you.

Related Practice Areas at Exec Capital

PE-backed executive recruitment intersects with several adjacent practice areas — broader CEO and C-suite search where the requirement is not PE-specific, fractional engagements where the engagement model rather than the funding background drives the brief, and family office investment leadership where capital deployment patterns share characteristics with institutional PE.