By Eric Walczykowski, Adam Boone, Zaneb Rashid

Today we are launching sector coverage of the rapidly evolving Healthcare IT space, providing our clients with unmatched visibility and curated access to high-impact leaders for software and SaaS companies.

The move highlights our 80 placements to date of top executives in software and SaaS companies that are breaking new ground in healthcare technology.

As the largest executive search firm focused exclusively on software, our move to initiate coverage of Healthcare IT is driven by the sector’s extraordinary growth and the increasing demand for transformative leadership.

Our goal is to empower Healthcare IT companies with leadership that can excel in this dynamic landscape and create value for investors.

This expansion is a strategic enhancement of our Private Equity Client Services Program, giving our clients curated access to the leaders who are experts in scaling software and SaaS companies.

The Healthcare IT sector is diverse, encompassing R&D information management, patient experience management, electronic health records (EHR), and more. Our established expertise in software and SaaS positions us uniquely to address the leadership needs across these sub-sectors, driving technological innovation and operational efficiency.

As we kick off coverage, we are providing our lists of the most significant deals and the most significant exits of 2023 in private equity backed healthcare IT.

Key Private Equity Healthcare IT Deals of 2023

Apixio

New Mountain Capital and Eir Partners led a follow-on investment to enable the merger of Apixio and ClaimLogiq, creating a leading connected care platform. The merger positions the combined entity to enhance healthcare AI solutions.

ShiftKey

ShiftKey raised $300 million at a post-valuation of over $2 billion. The investment round was led by Lorient Capital, Ares Management Secondaries funds, and Pantheon, aiming to expand ShiftKey’s healthcare staffing solutions.

Key Private Equity Healthcare IT Exits of 2023

CorEvitas

Thermo Fisher Scientific acquired CorEvitas from Audax Private Equity. The acquisition is set to strengthen Thermo Fisher’s Laboratory Products and Biopharma Services segment with CorEvitas’s drug safety studies and precision medicine data sources.

Limeade

WebMD Health Services completed the acquisition of Limeade, enhancing its employee experience software offerings. The acquisition further accelerates WebMD’s ability to deliver innovative well-being solutions.

In conclusion, our expansion into the Healthcare IT sector is more than a strategic decision; it’s a commitment to influencing the trajectory of healthcare through technological innovation.

We understand the critical role leadership plays in this sector’s growth and are here to ensure that organizations are equipped with the best.

Stay tuned for more insights and updates as we navigate this exciting journey in Healthcare IT.

For more information on transformative leaders in Healthcare IT please visit www.bespokepartners.com/healthcare

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

Author:
Adam Boone
Chief Marketing Officer

Boone has led marketing, demand generation, branding, product management, services marketing, or alliances marketing programs for numerous successful companies including Avaya-acquisition Sipera, Sequoia start-up Syndesis, Subex, CoManage, and others. He has driven joint marketing programs and go-to-market initiatives with iconic industry leaders including Microsoft, IBM, GE, AT&T, Oracle, Comcast, Cisco, Ciena and Samsung.

Boone holds an MBA in Business Strategy from the WP Carey School of Business at Arizona State University and completed the Competitive Marketing Strategy Program at the Wharton School at the University of Pennsylvania.

In his personal time, Boone enjoys travel, fine food and wine, mountain biking, playing and listening to music, and movies.

Author:
Zaneb Rashid.
Research Analyst

Born in Colorado and raised in Austin, Texas, Zaneb graduated from the University of Texas at San Antonio with a B.A. in Psychology and a minor in Biology. Prior to joining Bespoke Partners, Zaneb worked in healthcare before discovering her passion for executive search.

As we close the chapter on 2023, it’s clear that this year marked a paradigm shift in the private equity sector.

Our industry has long grappled with numerous factors that drive success in portfolio companies.

However, 2023 was the year we collectively acknowledged a fundamental truth: talent is the number one factor in ensuring the success of portfolio companies and the realization of an investment thesis.

At Bespoke Partners, we’ve been at the forefront of this shift. Our core belief has always been that the right leadership is crucial for driving growth and value creation.

This year, our research provided compelling evidence to support this belief.

A staggering 84% of private equity firms we reviewed now have dedicated staff focused on optimizing talent within their portfolio companies.

You can read more about the trend in our Private Equity Talent Benchmark report, available here: https://www.bespokepartners.com/private-equity-talent-report/

This shift towards a talent-centric approach is not just a trend. It’s a strategic realignment that recognizes the immense value of human capital in driving business success.

Bespoke Partners’ Milestone: Placing Our 1000th High-Performing Executive

2023 was also a landmark year for Bespoke Partners. We achieved a significant milestone by placing our 1000th high-performing executive in a private equity software portfolio company.

This achievement is not just a number. It represents a thousand instances where we’ve connected exceptional leaders with companies where they can truly make a difference.

Each placement is a testament to our rigorous, tailored approach to executive search and our deep understanding of the unique needs of the private equity sector.

Our data-driven search process is meticulously designed to identify leaders who are not just skilled but are the right fit for the unique culture and challenges of each portfolio company. We believe that this bespoke approach is why we’ve been able to consistently place leaders who drive transformative change and deliver substantial value to our clients.

Looking Ahead

As we look to the future, we anticipate a resurgence in deal flow for software and SaaS, signaling a robust and dynamic market as dry powder is put to work. This renewed activity will bring fresh opportunities for investment and growth. However, it also brings challenges, particularly in the form of the need for strategic exits.

Exits are a critical component of the private equity lifecycle, and their importance will be heightened in 2024. A successful exit strategy hinges on the performance and stability of the portfolio company, which in turn depends on the quality of its leadership. As deal flow increases, the demand for top-tier executives who can steer companies towards successful exits will escalate.

Bespoke Partners’ Role in Navigating 2024’s Challenges

At Bespoke Partners, we are uniquely positioned to help private equity firms navigate these challenges. Our expertise in leader recruitment is more than just matching resumes with job descriptions. It’s about understanding the nuances of each company’s journey and the specific leadership qualities needed to navigate that journey successfully.

As I noted in a recent blog post, one of the key trends we are tracking is the rise of strategic talent management and particularly the arrival of the Chief People Officer in many C-suites of private equity portfolio companies.

Our approach in 2024 will continue to be proactive and strategic. We will deepen our engagement with private equity firms to understand their evolving needs and will expand our network to identify and attract leaders who can not only manage growth but also drive successful exits. We believe that our focus on leadership excellence will be a key factor in enabling our clients to capitalize on the opportunities that 2024 will bring.

Opportunities and Challenges

As we embark on a new year, we do so with the knowledge that the landscape of private equity is ever-evolving. The challenges and opportunities of 2024 will require a nuanced understanding of market dynamics and an unwavering focus on the quality of leadership within portfolio companies. At Bespoke Partners, we are excited to play a pivotal role in this journey, continuing to connect exceptional leaders with the companies that need them most.

In summary, 2023 was a year of recognizing the paramount importance of talent in private equity. As we look to 2024, we see a landscape ripe with opportunities for growth and exits, underscored by the need for outstanding leadership. At Bespoke Partners, we remain committed to being at the forefront of this journey and partnering with our clients to deliver this exceptional leadership for their portfolio companies.

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

In the midst of geopolitical tumult and financial uncertainty, it’s natural for companies to tighten their belts and look to cut costs where possible.

However, for private equity-backed software companies, 2024 presents a unique opportunity to invest in a role that can fundamentally strengthen their organization during such times: a strategic Chief People Officer (CPO).

Navigating Market Turmoil with Strategic Talent Management

Market turmoil creates a volatile environment for businesses, particularly in the competitive technology sector.

But it also offers an opportunity. As some organizations retract, the talent pool broadens, providing a chance to attract quality candidates who are looking for stable and visionary companies.

As we detailed in the most recent edition of our Private Equity Talent Benchmark Report, a strategic CPO can lead the charge in crafting a talent attraction function that not only identifies these individuals but also persuades them that your company is where they will thrive.

A CPO who understands the intricate relationship between business strategy and human capital can turn a period of market instability into a strategic advantage. By prioritizing the attraction of top talent and ensuring the alignment of employees’ skills with the company’s long-term objectives, they can position the company for growth when the market stabilizes.

The ‘Develop, Retain, and Belong’ Triad

Perhaps the most crucial aspect of a strategic CPO’s role in these times is fostering an environment where current employees don’t just survive but thrive.

It’s essential that employees feel a sense of belonging and are provided with opportunities for development. The CPO’s responsibility is to:

1. Develop:

Implement continuous learning and development programs tailored to enhance employees’ skills that are aligned with the company’s strategic direction.

2. Retain:

Cultivate a compelling value proposition for employees, understanding that people stay where they see a future for themselves. During market turmoil, a strategic CPO will ensure that communication channels are open and that employees feel secure and valued.

3. Belong:

In a world where remote work has become increasingly prevalent, creating a sense of community and belonging is paramount. The CPO must innovate ways to maintain company culture and employee engagement regardless of physical location.

A Proactive Approach to Talent Management

Rather than being reactive, a strategic CPO proactively manages the workforce to align with the company’s vision. In tumultuous times, they can reassess and realign the workforce planning to not only mitigate risks but also to capitalize on new market opportunities.

Furthermore, a good CPO understands the importance of data in driving strategic decisions. By leveraging analytics, they can provide insights into workforce trends, productivity, and engagement, allowing for informed decisions that can steer a company through the choppiest of waters.

Impact on Strategic Decision-Making

The CPO must be part of the top-level strategic decision-making process. Their insights into the workforce can offer a different perspective on the company’s direction and the strategies employed to navigate the challenging market landscape.

Our own CPO, Julie Catalano, shares her experience in her blog series, The People Perspective. She provides valuable examples of how the strategic CPO employs integrated talent management techniques to play a central role in executing on growth plansand achieving company goals.

As private equity-backed software companies look toward 2024, the decision to hire a strategic CPO should not be overlooked.

The benefits of having a dedicated leader focused on the human element of the business are invaluable, particularly when the market is unpredictable.

By focusing on talent attraction, development, retention, and belonging, a CPO can ensure that the company not only withstands the current turmoil but emerges stronger, more agile, and ready to capitalize on the eventual upturn. Investing in human capital strategy now is not just a defensive move—it’s a strategic play for long-term success.

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.