We continue to observe an abundance of founder transitions, particularly in smaller companies entering the growth stage. Private equity firms often prefer proven operators who can rapidly achieve investment theses, either by replacing founders with experienced CEOs or by surrounding founder-CEOs with seasoned operators and advisors.

CEOs are increasingly involved in the fundamentals of their organizations, overseeing projects they might have historically delegated. They delve into financials, understand the entire client pipeline, and scrutinize business metrics to manage performance effectively.

We focus on executives stepping into CEO roles for the first time, particularly those with proven experience as Presidents or General Managers with P&L responsibility. While some companies elevate CROs to CEOs, others seek candidates with comprehensive operational and financial oversight experience.

Personal engagement through in-person meetings and genuine courting efforts are key to securing preferred candidates. There is also a trend of CEOs from smaller companies moving to larger organizations for increased complexity, wealth creation potential, and more significant challenges.

Companies are granting CEOs the autonomy to decide on return-to-work policies, balancing remote and in-office work to meet organizational needs. CEOs must be adaptable, ready for frequent travel, and accessible to both employees and customers.

There is a significant shift towards vertical solutions tailored to specific industries like finance, healthcare, and retail. Investors seek CEOs with experience in growing companies within these verticals.

More top executives are moving from public companies to private equity-backed environments. This transition requires an understanding of private equity structures, and CEOs from public companies bring a disciplined operational approach valued in private equity settings.