The State of Private Equity Recruiting in 2025 

The Current State of the Private Equity Recruiting Market 

Private equity hiring has always been dynamic, but recent market conditions have accelerated significant shifts in the skills and expertise firms require. As traditional financial engineering strategies give way to operational improvements, firms are seeking leaders who can drive tangible value creation. At the same time, AI-driven recruitment, sector specialization, and the expansion of operating partners are reshaping talent acquisition strategies. ESG considerations are also becoming non-negotiable for firms looking to stay competitive.  

In this eBook, we’ll explore the most pressing trends shaping private equity recruitment today and how BrainWorks helps firms navigate this evolving landscape to secure the right talent for their needs.  

Industry expertise 

The growing importance of sector specialization 

Sector specialization is a prominent strategy for private equity firms. Specialized funds targeting industries such as healthcare, technology, and renewable energy provide PE firms with a competitive edge. By focusing on niche markets, these funds can identify operational inefficiencies, enhance profitability, and drive innovation. (Donnelley Financial Solutions)  

Private equity firms often invest in specific industries where they see potential for growth and value creation. As a result, there is a heightened demand for executives with deep industry-specific knowledge and expertise. (Exec Capital)  

According to Hunt Scanlon, the emphasis on specialized skills and expertise within PE has been expanding. As competition grows and the industry becomes more complex, private equity firms are seeking out professionals with industry-specific expertise in sectors such as technology, healthcare, and energy.  

Why firms prioritize industry expertise 

Market conditions demand a more hands-on approach focused on cost optimization, digital transformation, and workforce efficiencies. Resilient and scalable portfolio companies are much more attractive to investors, and operational improvements have become the primary lever for value creation in private equity. This demands a new breed of leadership with deep industry expertise, strategic vision, and change management skills. Industry-specific experience is becoming more critical, with firms seeking leaders who can navigate complex sector changes. (Cedar Private Equity)  

When industry expertise is not the top priority 

While industry-specific knowledge is valuable, it can also limit fresh perspectives. PE firms should also consider leaders with diverse backgrounds from adjacent industries or even tech-driven sectors.  

By working with BrainWorks, firms gain access to a team with diverse industry expertise, enabling them to identify top candidates based on performance and proven success—whether they specialize in a firm’s specific industry or bring valuable cross-industry perspectives.  

AI-Driven Recruitment Strategies 

How firms are using AI 

Artificial intelligence is becoming a critical component of private equity value creation with 59% of private equity firms now viewing AI as a key driver of competitive advantage. (Cedar Point Equity)  

The use of AI in private equity means that executives now require a combination of financial expertise, strategic leadership skills and technological acumen. However, finding professionals with this unique blend of capabilities is challenging. Many private equity firms are turning to interim executives with AI expertise to guide their transition and build long-term capabilities. (Cedar Private Equity) 

Expansion of Operating Partners 

Why the Operating Partner role is expanding 

In the past, operating teams based their support on general investment playbooks. While these still work in some cases, many firms are realizing that true value creation requires nuanced, sector-specific expertise. Today’s operating partners need deep industry knowledge and transformational experience in areas such as technology, operations, and workforce optimization. (PwC)  

We’re seeing an industry shift that is moving the operating partner role to more prominence, spanning the deal lifecycle from diligence through exit. Since 2010, 47% of value creation has come from operations, up from 18% in the 1980s, while financial engineering’s contribution has dropped from 51% to 25%. (Pwc)  

What this means for hiring 

Executives from industry backgrounds such as technology and manufacturing are increasingly stepping into operating partner roles. Many find their way into these positions through extensive networks and proven track records of driving growth and operational improvements. (Growth Equity Interview Guide)  

BrainWorks understands this shift and works closely with PE firms to identify leaders who can bring real operational impact to portfolio companies.  

Focus on ESG 

The rising importance of ESG in private equity 

ESG (Environmental, Social, and Governance) considerations are now a cornerstone of modern investment strategies. Institutional investors and stakeholders are demanding greater accountability and sustainable business practices. Firms that integrate ESG principles are not only mitigating risks but also unlocking new opportunities for long-term value creation. (DNCB Financial Group)  

Why ESG matters 

• Enhancing long-term value creation: ESG integration allows firms to address operational inefficiencies, reduce costs, and improve governance—all of which contribute to stronger returns.  

• Risk mitigation & opportunity identification: Avoiding ESG risks helps firms prevent regulatory fines and reputational damage while also capitalizing on the growing demand for sustainability-focused businesses.  

• Investor expectations: Institutional investors increasingly view ESG as a measure of resilience and long-term profitability.  

• Market competitiveness: Firms that incorporate ESG principles are better positioned to navigate shifting regulations and industry standards.  

The hiring implications of ESG 

Leadership roles now require executives who can integrate ESG strategies into corporate objectives. CFOs must incorporate ESG metrics into financial reporting, and leadership teams must prioritize sustainability alongside profitability. (Cedar Private Equity)  

BrainWorks helps firms secure top-tier talent who not only understand ESG but have the experience and vision to implement sustainable business strategies.  

The private equity hiring market is evolving rapidly, with industry expertise, AI-driven recruitment, operating partner expansion, and ESG considerations driving demand for a new type of leadership. As firms adapt, finding the right talent has never been more crucial—or more challenging.  

BrainWorks is uniquely positioned to help private equity firms navigate these shifts. With deep expertise across industries and understanding of today’s evolving hiring landscape, we deliver high-impact leaders who drive growth and maximize value creation.  

For firms looking to stay ahead in an increasingly competitive market, partnering with BrainWorks secures access to the right talent at the right time.