CEO Trends: How Shifting Market Dynamics Are Shaping the CEO Market for Private Equity Portfolios

by Eric Walczykowski | Oct 22, 2024 | Blog

CEO Trends: How Shifting Market Dynamics Are Shaping the CEO Market for Private Equity Portfolios

Authored By Eric Walczykowski

As private equity firms slowed platform acquisitions and expansion over the past couple of years, the traditional cycle of CEO transitions has been disrupted, causing a noticeable tightening of the talent market.

This evolving dynamic demands a strategic approach to leadership placement, with an increasing reliance on mentoring first-time CEOs and leveraging other operating experts to steer businesses through an uncertain future.

I had the opportunity to catch up with two of Bespoke’s in-house CEO experts, Katherine Baker, co-lead of Bespoke Partners’ CEO practice, and Jenny Gray, Senior Vice President in the practice to discuss the CEO trends they have been seeing firsthand in the market over the last few months.

Here’s a recap of our Q&A.

Eric: We’ve noticed companies delaying exits due to interest rates and slower private equity activity, leading to fewer CEO transitions. It’s starting to pick up in 2024, and the second half may see more churn. However, the market remains tight. Jenny, what’s driving this?

Jenny: It’s a mix. Fewer transactions last year had executives focused on outcomes, creating a tight market. This year, there’s more M&A, with executives more open to new roles. After successful transactions, many CEOs want to take time off with family or travel, given the tough past few years. We’re seeing more downtime, and some are considering board or operating partner roles instead of jumping into another CEO role.

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Eric: So, CEOs are opting for different roles. Katherine, your thoughts?

Katherine:

CEOs aren’t just taking a month off—they’re taking 6-12 months to recharge. Some even plan to retire, but after a year, they may get bored and return to conversations. They’re selective about their next role, evaluating the business and financials closely.

Eric: That makes sense. Running a business through tough times, like COVID and uncertain markets, adds pressure. What used to be a three to four-year turnaround now feels like four to six years, with heavier decisions at every step. I understand why CEOs might prefer board or operating partner roles after an exit.

Jenny:

Exactly, and that’s why we’re seeing more board and operating roles. Businesses need experienced operators and CEOs to guide founders or first-time CEOs, adding pressure to perform. These dynamics play into the market.

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Eric: I’m glad you mentioned that. We found that 27% of board members in private equity are operators, while 73% are deal partners. This opens an opportunity for PE firms to bring in more operators aligned with value creation strategies. Katherine, any insights?

Katherine:

Yes, we’re seeing more demand for CEOs or experienced operators on boards. First-time CEOs especially benefit from a strong executive chair or board member with deep industry expertise, providing coaching and mentorship. There’s been a noticeable increase in this trend.

Eric: Right, and expanding the board to include step-up candidates, paired with proven CEOs as mentors, can help solve talent shortages. Jenny, how has this strategy worked?

Jenny:

Over 50% of our placements are now first-time CEOs. They’re hungry and willing to put in the effort, and with a strong board or executive chair, we’ve seen a lot of success. These CEOs can lean on experienced leaders for guidance on M&A, scaling, and C-suite building.

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Eric: I love that. It allows private equity firms to work with successful CEOs on their next steps, using them as executive chairs or part-time partners. Katherine, your thoughts?

Katherine:

It’s a solid strategy. It helps the deal team better understand the business, leveraging these operators to identify pain points, opportunities, and strengths. Having that extra insight has been invaluable.

The evolving CEO trends signal a transformative shift in leadership, with many executives embracing new opportunities for growth and reflection, whether through time off or taking on strategic roles like board and operating partner positions.

As the market continues to adapt, there is a sense of optimism as both seasoned leaders and rising CEOs collaborate to navigate challenges, driving innovation and success in this dynamic environment.

Learn More About the CEO Leadership Practice

First Time Right Placement of CEOs, Board Members, Presidents, GMs and Other Senior Leaders Who Transform Portfolio Companies

About Bespoke Partners

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors. Bespoke Partners can help companies seize emerging opportunities by staying ahead in the software and SaaS leadership market.

Connect with Bespoke Partners to learn more:

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

top 49 search firms 2 years in a row - bespoke partners

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.

Featuring:
Katherine Baker
Partner,
Co-lead of CEO Practice

Based in Bespoke’s Austin office, Katherine co-leads the CEO practice and is a GTM practice expert to help build the executive teams for private equity backed software and technology companies. Over the last 6 years Katherine has completed over 150 searches for firms such as WCAS, Francisco Partners, Clearlake Capital, Insight Partners, TA Associates, Providence Equity, and more.

Prior to joining Bespoke in 2017, Katherine focused on recruiting Finance executives across all industries including SAAS, Biotech, Energy, and Defense from Fortune 500 companies to start-ups. She has led dozens of placement searches that have resulted in portfolio company exits, and billions of dollars of total transaction value creation.

Katherine graduated from the University of San Diego with a bachelor’s degree in finance with a minor in Spanish.

Featuring:
Jenny Gray
Senior Vice President,
CEO Practice Expert

Jenny Gray is a Senior Vice President at Bespoke Partners within our CEO & Board Practice. Jenny specializes in leading CEO & Board searches for our clients across growth equity to buyout with portfolio companies in B2B SaaS. She has also specialized in Go-to-Market and Chief Customer Officer searches. She has led over 70 successful searches since she joined Bespoke in 2019 and has placed executives across multiple portfolio companies including Thoma Bravo, Insight Partners, Clearlake Capital, K1, PSG and others.

Prior to joining Bespoke, she spent four years working in advertising and sponsorship sales at the Wall Street Journal in New York and also worked an additional two years in software and PEO sales at TriNet. Jenny graduated from Goizueta Business School at Emory University with a BBA in Marketing & Consulting and a minor in International Business.

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CFOs Play Expanding Role in Value Creation for Private Equity Backed Firms

by Eric Walczykowski | Oct 16, 2024 | Blog

CFOs Play Expanding Role in Value Creation for Private Equity Backed Firms

Authored By Eric Walczykowski

With hold periods getting longer and deal flow still in gridlock, CFOs play a more critical role than ever in driving value creation for private equity-backed companies.

I recently sat down with Nick Donlan, Parter in Bespoke’s Finance practice to discuss trends his team has been seeing, and how CFOs can be a driving for across all phases of the deal cycle.

Be sure to catch the full interview here. Below is a summarized Q and A of my conversation with Nick.

Eric: Nick, what trends are you seeing for top-tier CFO candidates looking for in their next role?

Nick: It’s no secret that finding proven, sitting CFOs has been a challenge in recent years, especially as hold periods have extended and the macro environment has remained competitive. We often encourage our clients to broaden their search, considering candidates with experience in public companies or even venture-backed environments. These candidates might not have a PE background but could still be a great fit. The key is finding someone who balances operational expertise with the ability to be a strategic partner to the CEO and the board.

These top CFO candidates often have multiple opportunities to choose from, so clients need to move fast through the interview and offer process. We’re also seeing very competitive offers right from the start. CFOs are looking for roles with different scopes depending on where they are in their careers or the current market.

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Eric: What are some of the criteria our CFO candidates are assessing during an interview process, considering today’s market?

Nick: CFOs are doing as much diligence on the company as the company is doing on them. They want to understand the team, the market opportunity, and the state of the finance and accounting function. Are the basic reporting systems and financial structures in place? And once those are set, how can they partner across functions, especially with sales and marketing, to drive both growth and profitability? CFOs want to make sure they have the capacity to contribute strategically, particularly in areas like M&A, rather than just managing basic financial reporting, which is more the role of a controller.

Eric: Why is M&A so attractive to CFOs as part of their responsibilities?

Nick:

Many CFO candidates are drawn to M&A because it allows them to scale a company quickly. We’ve seen a lot of roll-ups recently where M&A plays a big role in the value creation plan. CFOs who have experience with due diligence, integration, and executing the playbook are in high demand. They bring structure and performance management to the process, helping drive operational excellence post-acquisition. For CFOs with a sense of urgency and a focus on continuous improvement, M&A offers a great opportunity to build something scalable, whether it’s improving customer success or expanding the go-to-market organization.

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Eric: When we talk about growth strategy and optimization, how are CFOs being asked to drive growth today, and what do you see in the next 6 to 12 months?

Nick:

The challenge for any CFO is understanding all aspects of the business, not just finance. CFOs are increasingly partnering with go-to-market teams to ensure growth is sustainable. We’ve seen companies that focused on top-line revenue growth but didn’t necessarily consider the efficiency of their sales organizations. CFOs are stepping in to revise compensation plans, ensuring that they incentivize value creation—whether through higher margins or focusing on products that will generate better multiples at exit. CFOs are helping align the efforts of CROs and CMOs with the company’s overall value creation goals.

Eric: One area I wanted to explore is capital structures. Why do CFOs find engaging with capital structures so attractive?

Nick:

CFOs thrive on the strategic side of their role, including working with the board and bankers to optimize capital structures. Securing favorable terms from debt holders or positioning the company for a successful exit energizes them. We’ve seen CFOs build strong relationships with funds, where they might handle multiple portfolio companies or move into an operating partner role. It’s a natural progression for CFOs who have successfully guided portfolio companies through exits.

Eric: That’s a great point. Strong relationships with funds often lead to CFOs being placed into other portfolio companies or taking on broader roles. How important is that network for a CFO?

Nick:

It’s crucial. We’ve seen many CFOs transition into operating partner roles after successful exits, where they help guide other CFOs in the portfolio. They bring best practices and operational improvements, which can be invaluable for driving success across multiple companies.

Eric: Another trend we’ve seen recently is a heightened focus on cash flow management. Why is that so important right now?

Nick:

In recent years, the focus has been on top-line growth, but both public and private markets are now placing more value on operational efficiency. Ensuring there’s enough cash to operate is critical. CFOs are focusing on tactical elements like reducing days sales outstanding and ensuring cash flow is optimized. While these tasks can sometimes be overlooked, they’re essential for long-term success, especially in a changing market where M&A and growth initiatives are key drivers of value.

Learn More About the Finance Leadership Practice

Best-in-Class Finance Executives in Software and SaaS Recruited in Half the Industry Average Time

About Bespoke Partners

Connect with Bespoke Partners to learn more:

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

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 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.

Featuring:
Nick Donlan
Partner,
CFO Practice

With a focus on CFO searches for private equity-backed software companies, Nick has placed operational CFOs who’ve driven exceptional outcomes on behalf of top sponsors including Thoma Bravo, Francisco Partners, and TA Associates. Nick has also been an integral part in building out executive teams at Quest, Imperva, Instructure, Insurity, Paycor, ABC Fitness, MeridianLink, Quorum Software, Redwood Software, and others.

During his 10+ years at Bespoke’s Austin office, Nick has orchestrated successful placements of high-impact executives for a wide spectrum of clients, from growth-oriented, pre-IPO companies to buyouts to complex carveouts and turnaround situations. He has experience placing executives in pre-IPO and recently public SaaS companies, including nCino, Paycor, Duck Creek, and Pluralsight.

Prior to joining the Bespoke team in 2016, Nick worked at GLG, where he supported private equity and venture capital firms in deal origination and due diligence efforts.

Nick graduated cum laude from Dartmouth College, where he received a Bachelor of Arts in Government and competed for the College’s policy debate team.

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The Employee Value Proposition Drives Outsized Company Performance

by Eric Walczykowski | Oct 10, 2024 | Blog

The Employee Value Proposition Drives Outsized Company Performance

Authored By Eric Walczykowski

The “value proposition” is a common concept in marketing. It describes the benefit you will receive if you purchase and use a company’s product or service.

Apply the same concept to People and Talent management, and you have the “Employee Value Proposition” or EVP. If you choose to work for a given company, what benefits can you expect to receive in exchange for your time and talent?

Bespoke carefully considers its EVP because we see it as central to our success. While most search firms serving private equity are down 25% to 30% this year, we are up 30%, dramatically outperforming the norm.

I recently sat down with Julie Catalano, Bespoke’s Chief People Officer, to discuss how our EVP has enabled us to grow and thrive in a market where others are struggling just to stay afloat.

Below is a summarized Q&A of my conversation with Julie.

Eric: Julie, what is an EVP or an employee value proposition?

Julie: An EVP is essentially the set of offerings an employer provides in exchange for the skills, capabilities, and experiences an employee brings. At Bespoke, we view our EVP as not just a tool for attracting talent but also for retaining our exceptional team.

Our aim is to make this the best job they’ve ever had—not necessarily the easiest—but one where they’re challenged, supported, and can achieve remarkable things personally and professionally.

In today’s competitive talent market, our EVP goes beyond immediate benefits, focusing on long-term career development. We ensure every team member feels valued and supported, offering world-class health benefits and opportunities for professional growth, such as our pod model, to help them succeed and grow with us.

Take a Closer Look at Bespoke's EVP

Eric: No doubt. You and I both come from larger, world-class organizations When I think about Deloitte, we were constantly in the top ten places to work. We’ve mirrored that here at Bespoke and taken a big company approach to development of our employees and really invested them. And it’s definitely paying off in spades.

Julie:

So Eric, what I think is so unique about Bespoke, frankly, is you and our ELT and how much you deeply care about the employee experience. I think that’s a huge differentiator for us. Could you elaborate on how we empower our employees’ career journeys?

Strategic Talent Development Drives Business Value (1)

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Eric: Absolutely. At the heart of it, we’re committed to disrupting an industry, and that means deeply valuing the holistic well-being of each employee, both professionally and personally.

We spend considerable time discussing where each team member is on their journey, ensuring they’re supported in both areas. It’s crucial they prioritize their “big rocks”—family, health, wellness, travel, passions—because a strong foundation at home enables them to excel at work. You’ve excelled in establishing programs that set clear expectations, guide success, and offer support when challenges arise. Your vision for employee engagement at Bespoke has truly become a competitive advantage. I genuinely believe that those who don’t choose to work at Bespoke are missing out on an environment where we deeply invest in their personal and professional growth.

Julie:

If someone observed our one-on-ones, they’d see our genuine, holistic care for our employees. Reflecting on research around corporate culture, Wharton defines culture as what you reward and punish. At Bespoke, we’re a reward culture, and our earnings surpass industry benchmarks because we truly invest in our employees’ success. I believe we offer more support than anyone else in our industry, with dedicated resources like search coordinators and advanced research tools, making us truly unique in our offerings.

Watch the Full Interview

Eric: I’m so proud that I get to boast a little about our engagement scores mid-year, it was very cool to be able to get extremely high scores as a smaller company, but still be able to provide the level of resources, engagement and development. Julie, as we think about sustainability in the future, how do our values play into that?

Julie:

Our values are really the backbone of our culture. Things like diversity and inclusion, investing in other people’s success, having a growth mindset. So those are all values that we call out to our employees. But they’re really not just words. We live by these principles. Also, when you mentioned sustainability, We have a commitment to sustainability that really ensures that all of our operations have a positive impact on society and also on environmental health. So it’s really so critical that we view ourselves in that way.

Eric: I could not be prouder of the hard work that you and your team have done and the investment that we’ve made in our people, because people are really at the core of our business.

And as we go through the selection process and recruitment process, I think we consistently look for people who could be as we continue to recruit great people. Julie, I am so thankful that you’re on the journey with me to help our employees be able to say when we’re done this was the best job they ever had.

Unlock Your Potential

To learn more about job opportunities with Bespoke Partners please visit: Unlock Your Potential at Bespoke: Your Best Career Awaits (bespokepartners.com)

Learn More

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

Introducing Our New Employee Value Proposition: Unlock Your Potential at Bespoke

At Bespoke, we believe that the foundation of every successful company is its people. This belief drives our commitment to nurturing exceptional talent through a supportive and rewarding environment. Today, we are thrilled to unveil our new Employee Value Proposition (EVP): “Unlock Your Potential at Bespoke: Where Your Career Thrives.” As companies strive to align their sales, marketing, and product development strategies more closely, the role of GTM teams within the organizational structure has seen significant shifts. We see a strong uptick in clients seeking guidance on structuring their GTM functions to achieve optimal organizational design and performance. Here’s our playbook for redefining GTM roles and responsibilities to better drive value creation.

Navigating the Future of Talent: A Q&A with Julie Catalano, Bespoke Partners’ Chief People Officer

Meet Bespoke Partners Chief People Officer, Julie Catalano: With a robust background spanning more than 20 years in senior leadership roles in human resources, organizational culture, and business strategy, Julie Catalano is a distinguished figure in her field.

Harnessing the Power of Integrated Talent Management in 2024: A People-Centric Approach to Growth

In her final post of 2023, Julie emphasizes the significance of Integrated Talent Management (ITM) as a core business strategy in private equity-backed firms, highlighting its alignment with the key pillars of attract, develop, retain, and belong to foster a dynamic culture that drives value creation and competitive success.

Arrival of the Chief People Officer: A New Era of Value Creation

Delve into the evolving role of the Chief People Officer as Julie shares her personal journey into the HR and human capital sphere. She reflects on the changes within the industry and her own experiences navigating this dynamic landscape.

Finding Balance: Navigating the World of Virtual Work

In this month’s blog, we delve into the intriguing dichotomy of the virtual workforce, the challenges it presents, and the undeniable value of fostering intentional in-person connections.

Nurturing Talent Within: Our Commitment to Developing Exceptional Leaders

In our relentless pursuit to be the best at people, Bespoke has made a strategic decision to engage with Gallup, a global analytics and advisory firm renowned for providing valuable insights and solutions to organizations.

Leading from the Front: Working with Gallup to Elevate Our People Strategy

Chief People Officer Perspective: An Inside View of Talent’s Role in Value Creation

In Bespoke’s Private Equity Talent Benchmark report, we discuss the rise of the Chief People Officer (CPO) role as a key industry trend.

Women in Leadership: Let’s Share Our Journeys on International Women’s Day

In honor of International Women’s Day (IWD), I wanted to take this opportunity to share some insights on my role as Chief People Officer at Bespoke Partners, my journey as a working mother, and the enormous passion I feel for supporting women in leadership everywhere.

How Our Culture Enables Our Exceptional Team to Build Exceptional Teams

At Bespoke Partners, we are in the business of building exceptional teams for our clients. Leadership talent is the primary factor in value creation for the private equity backed companies we work with. We believe that it takes and exceptional team to build those exceptional teams.

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 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.

Featuring:
Julie Catalano
Chief People Officer

Julie brings more than 20 years of senior leadership in human resources, organizational culture, and business strategy. Prior to Bespoke, she served as Vice President, Global Human Resources at Vertex Inc. and has held multiple key leadership roles across the HR disciplines at Vanguard.

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Recruiting Best Practices: Back-Channeling Provides Comprehensive Executive Vetting

by Eric Walczykowski | Oct 8, 2024 | Blog, Recruiting Best Practices

Recruiting Best Practices: Back-Channeling Provides Comprehensive Executive Vetting

Authored By Eric Walczykowski

Back-channeling is a reference technique that sparks controversy. But it is absolutely essential when you are hiring mission-critical senior executives.

This is especially true in the private equity sector, where a mis-hire can derail value creation and put the investment thesis at risk.

For private equity firms, getting the right executive in place is non-negotiable, and back-channeling plays a crucial role in ensuring that the person who interviews well is also the right person to show up for work.

Part 4:

The New Recruiting Best Practices Blog Series



TODAY:

Back-Channeling for Comprehensive Vetting



UP NEXT:

Recruiting Firm Fees & Search Outcomes

Back-Channel Early and Often

Back-channeling goes beyond the resume and the interview. It’s talking to people who worked with executives at previous companies but who the candidate has not named as formal references.

It’s about digging deeper to understand who a candidate really is—how they work, what they contribute, and whether their cultural ethos aligns with the company they’re being hired to lead.

At Bespoke Partners, we don’t just dabble in back-channeling; we’ve turned it into an art form, running an average of eight back-channels per candidate to validate their fit for the role.

Why Back-Channeling Matters

Beyond the Resume:

Resumes and interviews only tell part of the story. A candidate might present well in a formal setting, but it’s through back-channeling that we can verify their true impact, leadership style, and how they interact with others in the workplace.

Ensuring Cultural Fit:

Cultural fit is as important as technical expertise, especially in leadership roles. Back-channeling helps us confirm that the culture and ethos a candidate projects in an interview match what they’ve demonstrated in previous roles.

Validating Contributions:

It’s not enough for a candidate to claim success; back-channeling allows us to verify that their contributions were real and significant. This step is crucial in ensuring that the person we place can genuinely deliver on what they promise.

How Bespoke Partners Employs Back-Channeling



Comprehensive
Checks

We typically run eight back-channels for each candidate. These are in-depth conversations with people the candidate has worked with in the past—peers, subordinates, and even clients. We expect at least one of these to be controversial or negative, which is to be expected when someone has been in leadership and has had to make tough decisions.



Proactive Issue
Management

When a back-channel raises concerns, we don’t shy away from it. Instead, we use this information to guide further discussions with the candidate and the client, ensuring that any potential issues are fully explored before a decision is made.



Building Trust

For both companies and candidates, back-channeling is an opportunity to build trust. It ensures that by the time an offer is made, both parties are confident in the fit, preventing late-stage surprises that could derail the process.

Examples of Back-Channeling in Action

Validating Leadership Style

In one search, back-channeling revealed that a candidate who presented as a collaborative leader had, in fact, clashed with their previous team. This insight allowed us to have a candid discussion with the candidate, ultimately leading to a mutual decision that the role wasn’t the right fit.

Confirming Cultural Alignment

For another client, back-channeling confirmed that a candidate who seemed like a perfect fit on paper had consistently fostered a positive, inclusive culture in their previous roles, leading to a successful placement that has since driven significant growth for the company.

At Bespoke Partners, back-channeling isn’t just a box to tick—it’s a critical component of our process that ensures we get it right.

By back-channeling early and often, we’re able to confirm that the candidates we present are not only qualified on paper but are also the right fit for the company’s culture and strategic goals. This meticulous attention to detail is why our placements have a 95% success rate, with executives staying in their roles for at least two years.

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

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

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GTM Leadership Trends: Exploring Compensation, Leadership Changes, Global Expansion

by Eric Walczykowski | Oct 3, 2024 | Blog

GTM Leadership Trends: Exploring Compensation, Leadership Changes, Global Expansion

Authored By Eric Walczykowski

As global expansion becomes a key strategy for businesses, the talent landscape is evolving alongside it. Companies across industries are focusing on the right go-to-market (GTM) talent to lead this expansion, both in the U.S. and abroad. Bespoke Partners has been closely tracking these trends, and our recently published GTM Talent Report sheds light on the challenges and opportunities in the space.

I recently sat down with Peterson Loftin, Bespoke’s new partner in the GTM Leadership Recruiting Practice, to get his insights on international expansion, market timing, and compensation trends. Peterson’s experience and perspective provide valuable takeaways for companies navigating the current GTM talent landscape.

Here’s a recap of our Q&A.

Eric: Welcome, Peterson! With the recent release of our GTM Talent Report, I wanted to dive deeper into your insights on the market. With international expansion on the rise, what geographic trends have you noticed in the market?

Peterson: Absolutely, Eric. Global expansion is happening across the board, with North American businesses moving into Europe and APAC, and vice versa. We’re also seeing an uptick in Australian companies making moves into the U.S. When U.S. companies expand internationally, it’s often because their product offers a clear advantage over what’s available in those markets. Outside North America, competition tends to be less fierce, presenting a prime opportunity to capture market share. On the other hand, international companies see North America as a massive, largely untapped market. While it’s certainly more competitive, the sheer size of the total addressable market (TAM) makes it a highly attractive target.

Download the Report

Eric: Timing is everything when it comes to expansion. Are you seeing any changes in how companies approach leadership hires based on the current market landscape?

Peterson:

There’s definitely a sense of caution. Interest rates and the political climate are making companies more thoughtful in their decision-making. We’re still seeing new searches kick off, but both sales and hiring cycles are moving at a slower pace. Candidates and businesses alike are taking a more deliberate approach when making leadership changes. That being said, Bespoke has had an incredibly strong year, though that’s not reflective of the broader market. Many firms are feeling the pinch more acutely.

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Eric: I agree, and in my view that is a true testament to the quality of work our team delivers. What seems to be driving leadership transitions in today’s market, and how are executives responding to these shifts?

Peterson:

Finding top-tier executives is always a challenge, no matter the market conditions. Lately, we’re seeing more replacement searches, driven by investors who feel that current leadership may not be able to steer the company through extended hold periods. This shift opens unique opportunities. Some executives, while performing well, are at companies with delayed exits, making them more receptive to new roles. Whether due to timing or changing valuations, these leaders are increasingly open to making a move, even if they’re successful in their current positions.

Download the Report

Eric: Shifting gears to selling into end markets—what are some key questions companies should be asking themselves to make sure the market aligns with their overall investment thesis?

Peterson:

When selling into end markets, it’s crucial to understand both the role of your product and the needs of your customers. Are you offering something essential—like a painkiller—or more of a ‘nice to have,’ like a vitamin? This distinction matters because in tighter economic conditions, businesses will cut non-essential items first. Identifying whether your product solves an immediate, pressing problem or simply enhances convenience can guide your strategy.

Eric: Compensation always plays an integral role in attracting top talent. Any trends you’re seeing in GTM compensation?

Peterson:

When it comes to compensation, there are notable differences between customer/marketing roles and revenue/sales roles, even though they all fall under the broader GTM umbrella. Generally, you can expect to pay more for Chief Revenue Officer (CRO) and Chief Sales Officer (CSO) roles. For a CRO, around 50-60% of their compensation will come from a base salary, with the rest made up by bonuses. In contrast, Chief Marketing Officers (CMOs) typically see around 75% of their compensation as base salary and 25% in bonuses. We tend to see that the base salaries for these roles may not differ significantly, but the real difference lies in the bonus size, with revenue-focused roles commanding much larger performance-based incentives.

Eric: That makes total sense. We always advise our clients to align the compensation structure to the goals and strategies related to the role. I’m curious, what do you feel are the key elements of a successful and efficient executive search strategy?

Peterson:

It’s essential to align all stakeholders before launching the search to ensure a clear, agreed-upon interview process and evaluation criteria. In today’s competitive market, top candidates are often juggling multiple opportunities, so efficiency is key. A well-defined process from the start helps keep them engaged. On the flip side, introducing new steps or changing expectations midway can lead to frustration and lost interest, making it harder to secure the best talent. Consistency and clarity throughout the process are key to securing top-tier talent.

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The Right Leadership for Global Growth

What stands out most from this discussion is how essential the right leadership is for global growth. A great product is important, but it’s the leaders who can navigate new markets and set the strategy in motion.

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

Learn More About the Go-to-Market Leadership Practice

Bespoke’s Go-to-Market Practice places Sales, Marketing, Customer Success and other revenue- and growth-driving leaders.

About Bespoke Partners

Connect with Bespoke Partners to learn more:

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 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.

Featuring:
Peterson Loftin
Partner,
Go-to-Market Practice Expert

Peterson Loftin is a Partner in the Go-to-Market Leadership Recruiting Practice with Bespoke Partners.

Based in Los Angeles, Peterson joined Bespoke Partners in 2024 after a decade focused on private equity executive recruiting. He is a seasoned leadership consultant with an exceptional track record of enhancing team leadership and business outcomes for portfolio companies.

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From Deal Flow to Talent Flow: A Q&A with Vivek Batra of Alphaskill

by Eric Walczykowski | Oct 1, 2024 | Alliance, Blog

From Deal Flow to Talent Flow: A Q&A with Vivek Batra of Alphaskill

Authored By Eric Walczykowski

As private equity markets in Europe show renewed activity, firms are focusing on aligning talent with their investment strategies. Success hinges on having the right leadership to navigate deal complexities and execute growth plans.

I recently spoke with Vivek Batra, Managing Partner at Alphaskill. Our firms share a commitment to client success via executive search—Bespoke’s expertise in the US and Alphaskill’s network across Europe. In this conversation, we cover the market, challenges of securing top-tier talent, and strategic leadership in new markets.

Below is a summarized Q&A of my conversation with Vivek.

Eric: Let’s start by introducing Alphaskill. How would you describe your approach to executive search, and what’s your current focus in Europe?

Vivek: Alphaskill is deal-centric—we focus on working with private equity firms, primarily mid-cap, and we operate out of three European offices: Munich, London, and Paris. Our approach is unique because we provide deal advisory services alongside executive search. We partner with PE firms as they evaluate deals, offering talent solutions that give them a competitive edge. We handle C-suite searches post-deal, much like Bespoke, with a focus on placing executives that drive value. Private equity firms demand urgency, and we’ve built our process to deliver on that need.

Watch Eric’s interview with Vivek!

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Eric: How do you see the current deal environment in Europe?

Vivek:

The first half of 2024, and the latter half of 2023, were slow for deal flow, but we’ve started to see an uptick. Europe takes longer summer breaks, but even with that, we’ve closed deals consistently over the past few months. The stabilization of interest rates, and their decline in the UK, has noticeably shifted market sentiment. As firms grow more confident in the current economic landscape, deal activity is picking up. The pipeline continues to build, and we expect this momentum to persist as companies move forward with renewed assurance.

Eric: In the US, we’re seeing executives being more scrutinous about making moves because many are tied up in deals that are either in process or just about to start. To me, that’s a promising sign for deal flow, especially now that the cost of capital seems to have topped out. Are you seeing similar trends in Europe?

Vivek:

Absolutely. CFO searches remain some of the toughest for us, and that’s because CFOs with proven exit experience are in high demand. Many of the best candidates are still engaged in their current exit processes, which makes it harder to find top-tier talent available for new roles. That said, we’re seeing more CFOs preparing for upcoming exits, which gives us hope that there will be more movement in the near future as these exits come to fruition.

Eric: One of the areas where we’ve been getting a lot of inquiries from our European clients lately is around US country manager searches. Why do you think this role is becoming so crucial for European firms looking to expand into the US market?

Vivek:

Many European firms are looking for go-to-market (GTM) subsector advisors, even at the pre-deal stage. The US represents the largest technology market globally, and for many European private equity firms, entering the US is a central part of their investment thesis. Success in the US not only offers the opportunity to scale but also brings significant recognition. A product that succeeds in the US gains credibility on a global level. The US market is both highly competitive and of exceptional quality, and breaking into it can open doors to further international growth.

Eric: Why do you think having a US firm handle the country manager search is so important?

Vivek:

We’ve invested heavily in building domain expertise and networks in our core European markets, but to succeed in the US, it takes that same depth of expertise. The US is a vast, complex market, and it requires deep sector knowledge and a real understanding of local candidates. That’s why having a partner like you is so critical—you have the talent due diligence, sector relevance, and private equity focus that aligns with what we’ve built in Europe.

And while both sides may speak English, the cultural and regional differences in the US are huge. You need people on the ground who know how to navigate them. This is why we’re excited to partner with Bespoke.

Eric: In your experience, what’s the difference between hiring a sales leader versus a general manager for the US?

Vivek:

It comes down to the investment thesis and long-term strategy. If you’re looking to establish a solid foundation for growth, a general manager with strategic acumen is the better choice. They can set up operations, manage resources, and build a balanced leadership team. On the other hand, if the focus is solely on breaking into the market, a standout sales leader with a GTM track record will serve the role well.

Eric: How important is leadership when building bridges between headquarters and new markets?

Vivek:

Leadership is key. Whether it’s a GTM executive or a general manager, you need someone who can manage the relationship between the headquarters and the new market. This involves understanding the nuances of the local market, maintaining strong communication ties, and leveraging the resources of headquarters to drive growth.

Eric: Finally, what advice do you have for private equity firms entering new markets?

Vivek:

Think big, start small, and scale fast. It’s crucial to have a clear strategy, but you also need to stay agile and learn from the market as you go. Really understand what you’re trying to achieve by entering a specific market and base your KPIs on those goals. Each market has its own dynamics and finding the leadership who can do all three—think big, start small, and scale fast—is critical. That’s where we come in, helping you find the right leaders to guide this process effectively.

Securing the Right Leadership is Critical

From my conversation with Vivek, it’s clear that securing the right leadership is critical for private equity firms looking to expand and thrive in new markets. Together, Alphaskill and Bespoke are uniquely positioned to deliver top-tier talent enabling clients to capitalize on opportunities across both Europe and the US.

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

About Alphaskill

Alphaskill is a specialized Private Equity Advisor & Executive Search Firm, that creates and cultivates productive relationships between Private Equity Investors and industry-leading CEOs, CFOs and Non-Executive Board Members.

Connect with Alphaskill to learn more:

About Bespoke Partners

Connect with Bespoke Partners to learn more:

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 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.

Featuring:
Vivek Batra
Managing Partner,
Alphaskill

Vivek Batra is a Managing Partner at Alphaskill and has built their UK Practice.

He has a long international career in the Consumer, Retail and eCommerce sector, where he held various CEO/COO and NED roles in Private Equity portfolio companies in Germany and Benelux.

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CEO Trends: How Shifting Market Dynamics Are Shaping the CEO Market for Private Equity Portfolios

Eric: We’ve noticed companies delaying exits due to interest rates and slower private equity activity, leading to fewer CEO transitions. It’s starting to pick up in 2024, and the second half may see more churn. However, the market remains tight. Jenny, what’s driving this?

Eric: So, CEOs are opting for different roles. Katherine, your thoughts?

Eric: I’m glad you mentioned that. We found that 27% of board members in private equity are operators, while 73% are deal partners. This opens an opportunity for PE firms to bring in more operators aligned with value creation strategies. Katherine, any insights?

Eric: Right, and expanding the board to include step-up candidates, paired with proven CEOs as mentors, can help solve talent shortages. Jenny, how has this strategy worked?

Eric: I love that. It allows private equity firms to work with successful CEOs on their next steps, using them as executive chairs or part-time partners. Katherine, your thoughts?

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About Bespoke Partners

CFOs Play Expanding Role in Value Creation for Private Equity Backed Firms

Eric: Nick, what trends are you seeing for top-tier CFO candidates looking for in their next role?

Eric: What are some of the criteria our CFO candidates are assessing during an interview process, considering today’s market?

Eric: Why is M&A so attractive to CFOs as part of their responsibilities?

Eric: When we talk about growth strategy and optimization, how are CFOs being asked to drive growth today, and what do you see in the next 6 to 12 months?

Eric: One area I wanted to explore is capital structures. Why do CFOs find engaging with capital structures so attractive?

Eric: That’s a great point. Strong relationships with funds often lead to CFOs being placed into other portfolio companies or taking on broader roles. How important is that network for a CFO?

Eric: Another trend we’ve seen recently is a heightened focus on cash flow management. Why is that so important right now?

Learn More About the Finance Leadership Practice

About Bespoke Partners

The Employee Value Proposition Drives Outsized Company Performance

Eric: Julie, what is an EVP or an employee value proposition?

Eric: Absolutely. At the heart of it, we’re committed to disrupting an industry, and that means deeply valuing the holistic well-being of each employee, both professionally and personally.

Eric: I could not be prouder of the hard work that you and your team have done and the investment that we’ve made in our people, because people are really at the core of our business.

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GTM Leadership Trends: Exploring Compensation, Leadership Changes, Global Expansion

Eric: Welcome, Peterson! With the recent release of our GTM Talent Report, I wanted to dive deeper into your insights on the market. With international expansion on the rise, what geographic trends have you noticed in the market?

Eric: Timing is everything when it comes to expansion. Are you seeing any changes in how companies approach leadership hires based on the current market landscape?

Eric: I agree, and in my view that is a true testament to the quality of work our team delivers. What seems to be driving leadership transitions in today’s market, and how are executives responding to these shifts?

Eric: Shifting gears to selling into end markets—what are some key questions companies should be asking themselves to make sure the market aligns with their overall investment thesis?

Eric: Compensation always plays an integral role in attracting top talent. Any trends you’re seeing in GTM compensation?

Eric: That makes total sense. We always advise our clients to align the compensation structure to the goals and strategies related to the role. I’m curious, what do you feel are the key elements of a successful and efficient executive search strategy?

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About Bespoke Partners

From Deal Flow to Talent Flow: A Q&A with Vivek Batra of Alphaskill

Eric: Let’s start by introducing Alphaskill. How would you describe your approach to executive search, and what’s your current focus in Europe?

Eric: How do you see the current deal environment in Europe?

Eric: One of the areas where we’ve been getting a lot of inquiries from our European clients lately is around US country manager searches. Why do you think this role is becoming so crucial for European firms looking to expand into the US market?

Eric: Why do you think having a US firm handle the country manager search is so important?

Eric: In your experience, what’s the difference between hiring a sales leader versus a general manager for the US?

Eric: How important is leadership when building bridges between headquarters and new markets?

Eric: Finally, what advice do you have for private equity firms entering new markets?

Securing the Right Leadership is Critical

About Alphaskill

About Bespoke Partners

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Proactive Issue
Management