Instead of relying on a single partner's contacts, Hunt Club leverages a broad network of experts for referrals. This approach assumes a warm introduction from a trusted peer is more powerful and reaches a larger, more diverse talent pool than a traditional search firm's recycled candidates.
PE firms often provide rigid scorecards demanding candidates who've performed the exact same role before. This overlooks creative archetypes and "stretch" candidates with raw skills who could deliver superior results, especially as required skill sets rapidly evolve with new technology like AI.
A top CFO candidate disappeared for a week after verbally accepting a role because he was hospitalized by a spider bite. This story serves as a reminder that executive search is fundamentally unpredictable because it involves imperfect people, whose lives can be derailed by uncontrollable events at any moment.
The authority of a PE firm's Talent Partner varies drastically. Some are unilateral decision-makers, while others merely manage process or have no real voice. This ambiguity makes it difficult for search firms to navigate the hiring process, as they don't know whose opinion ultimately matters.
With longer hold periods and valuation pressure, many PE-backed executives' equity is worthless. To retain them, firms are structuring "management carve-outs"—a guaranteed bonus from sale proceeds paid out before the equity waterfall—ensuring executives are compensated for an exit even if their stock is underwater.
Many executives in PE-backed companies with underwater equity choose to leave rather than have a direct conversation with their sponsor about adjusting their compensation. This is a missed opportunity, as many sponsors would be open to creative solutions like carve-outs to retain valuable leaders.
Executive search firms' initial candidate lists have ballooned from ~100 to over 250. This is because rapidly changing skill requirements—driven by remote work, a focus on ROI, and now AI—have made the "ideal" executive profile less clear, forcing firms to cast a much wider net.
Technology is democratizing access to candidate pools, making the traditional recruiter's "Rolodex" obsolete. The future value of a recruiter lies in being a great client manager and domain expert who uses technology to drive an efficient process, rather than simply knowing the right people.
To combat their own bias for "proven" playbooks, private equity firms should require potential search partners to propose two creative, non-obvious candidate archetypes as part of the sales process. This forces the search firm to demonstrate innovative thinking beyond simply matching a rigid scorecard.