Function: Human Capital
Executive Recruiter Needed for Hospitality-Focused Portco
Firm comes to BluWave with executive recruiter need for portco
A D.C.-based LMM firm came to us with an executive recruiter need for one of their portfolio companies. This hospitality-focused portco had just acquired assets from one of its largest competitors and was moving into a larger warehouse. The firm urgently needed to place a CEO with deep distribution experience so that s/he could lead the business in implementing a new transportation system, re-branding the organization, and onboarding new employees from the recent acquisition. The firm had already executed an extensive search for an exact-fit CEO to run this $200M business and being 24 months away from an exit, the client was eager to identify candidates that matched their search criteria needs.
BluWave connects client with BluWave-vetted specialty executive recruiters
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade specialty executive recruiter needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of specialty executive recruiters that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select BluWave-vetted specialty executive recruiter from our invitation-only Intelligent Marketplace that fit their exacting needs.
Selected executive recruiter surpasses client’s expectations
Within the same day of the request, the PE firm was introduced to two exact-fit global providers that specialized in executive search. The client then selected their top choice and was able to begin working with a provider that was a 10 out of 10 fit. The agile provider was able to surpass the client’s expectations and placed a full-time CEO to lead the helm of the portco.
Interim Executive Immediately Needed To Set Up Procurement Office
VP immediately needs a top interim executive for portco
A large cap VP came to us with an immediate need for a 3-month interim executive to set up a procurement office at one of their portfolio companies. Focused on healthcare technology, the portco didn’t have an existing procurement office. They were procuring technology from a variety of vendors and were ultimately looking to achieve a 10% savings opportunity with creating a procurement function. The firm was looking for the interim executive to set up quarterly business, inform potential cost optimization, and identify near-term wins and opportunities on this cost saving initiative.
BluWave identifies interim executive to fit exact criteria
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim executive needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim executives that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select BluWave-vetted candidates from our invitation-only Intelligent Marketplace that fit their exacting needs.
The firm connected with presented provider to start procurement initiatives immediately
Within a couple of days of the request, the PE firm was introduced to three exact-fit providers. The client then selected their top choice that had led five previous PE-backed procurement initiatives. The provider was able to start the project immediately, integrated the team right out of the gate, and started working towards the client’s objectives and setting up the procurement office.
Immediate HR diligence provider needed
PE firm has critical need for HR diligence provider for target company
A middle market PE firm partner approached us with an immediate HR diligence need for a software-based portfolio company that they had under LOI. The PE firm wanted to take their typical HR diligence efforts to the next level and were looking for a group that could look at the available HR information in the target’s data room, summarize weaknesses and gaps, identify any existing employment issues, and more. There was no formal HR team currently in place, and the PE firm was eager to have a team not only dig around and make recommendations pre-close, but also be able to come in and fix the gaps they identified post-close.
BluWave identifies PE-grade diligence group specialized in software companies
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade HR diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of providers that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select BluWave-vetted specialized HR diligence providers from our invitation-only Intelligent Marketplace that fit their exacting needs.
Firm confidently engages with provider, gaining insight into target company
Within 48 hours of the request, we introduced the PE firm to an exact-fit service provider that specialized in performing HR diligence for PE firms evaluating software companies. The client quickly engaged the provider who was able to begin the diligence work within the next week. Thanks to their exact-fit background, the service provider was able to quickly gain meaningful insight into the company’s HR practices that gave the PE firm the information they needed to be confident in moving forward with the transaction.
Activating AI: Empowering Your Business for Success
Hunt Scanlon 2022: Human Capital in Private Equity
Last month, our team had the chance to attend Hunt Scanlon’s private equity recruiting conference in New York. At the conference, our founder & CEO, Sean Mooney, had the opportunity to sit on the panel, “The Art of Building Private Equity Leadership Teams,” alongside Jimmy Holloran of ParkerGale Capital, Amanda Roberts of L Catterton, Michelle Nasir of Arsenal Capital Partners, Kit Cooper of Signal Partners, and Adam Zellner of Business Talent Group. There were many value-filled panels throughout the day, allowing for hundreds of PE leaders to discuss and share their thoughts with one another on the current state of strategy, culture, and talent.
The pandemic has both accentuated and accelerated PE’s greatest challenges, and human capital is challenge #1. PE human capital leaders have quickly become the busiest people in the industry, demonstrated by our BluWave Activity Index which shows that 42% of PE projects in Q1 ‘22 were related to human capital, which was up from 36% in the previous quarter. Our key takeaways from the conference below share how talent leaders are staying busy and how they are creating efficiencies to drive more value while they are in such high demand:
1. The Need for a Data-Driven Approach to Talent
- Business leaders are increasingly recognizing the importance and value of quickly getting the right talent in place across all organizations. According to McKinsey, organizations that get talent right in the first year see 2.5x ROI on their initial investment. Getting talent right is not just a necessity for the C-suite, 90% of critical talent needs in a company lie below the C-suite.
- With so much at stake if you get talent wrong, many PE firms and proactive businesses are taking a data-driven approach to human capital in order to have best practices to track against.
2. Talent-to-Value
- Not only does getting the right talent in place quickly improve ROI, it is also crucial to enable companies to deliver on their value creation plans. One way firms are ensuring they get the talent they need is by developing great relationships with their recruiting firms. This allows recruiters to gain a sense for what “talent for that specific firm” looks like.
- While human capital is critical to value creation, everyone is fishing in the same pond for talent, creating difficulties in getting the talent you need. One solution to this is to take a holistic approach to talent identification & recruitment in which you identify the key targeted areas for value creation in a portfolio company and then systematically focus and prioritize solving the talent that will have an impact on the biggest value creation opportunities. This has been called the “Talent to Value” approach.
3. Growing Emphasis on Culture and DE&I
- There is a growing emphasis on culture and DE&I in private equity
- On the DE&I side, each firm needs to take a personalized approach that works for them. A good starting point is to take an initial framework and gather data internally to make sure everyone is included and heard. Then, needs should be measured on a quarterly basis to see how you are improving over time.
- On the culture side, a focus on internal company culture will help with recruitment & retention efforts, which ultimately, will help you advance your value creation plans. One way to do this is to assess what currently sets your culture apart and then build on it from there. Additionally, interviews should be assessing if candidates have cultural alignment, as much as they are assessing if they have skill and will.
Balancing the art and science of connecting talent to value, amidst a tight market will be the key driver to success as we head into the second half of 2022. If we can be of any assistance, please let us know.
Additionally, you may be interested in checking out some of our human capital specific resources, which can be found here:
Interim CEO with Niche Manufacturing Expertise
Interim CEO with manufacturing expertise needed to help grow business
A principal at a LMM PE firm approached us with a critical need for an interim CEO with deep manufacturing expertise. Having held their manufacturing portfolio company for a full year, the firm was looking to bring in a new CEO in order to transition the old one out and grow the business. They had been searching for months for a replacement CEO but had not found one that fit their needs, so they were now in urgent need of an interim to help facilitate the transition of the old CEO while they kept searching for a permanent replacement. They needed an interim CEO as soon as possible that had knowledge of both standardized and customized machining processes and lean six sigma expertise.
Understanding the firm’s specific criteria, BluWave identifies pre-vetted interim CEOs
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim CEO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of experienced CEOs that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted interim CEO candidates from our invitation-only Business Builders’ Network that fit their exact needs.
The firm engaged the CEO to improve the company’s business operations
Within 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to a PE-grade interim CEO candidate that had years of PE-sponsored experience in manufacturing. The client was able to successfully bring in the interim within the needed timeframe to transition the old CEO out, make business improvements, and lead as well as improve their operations until the permanent hire could be made.
In The Know: Executive Search
As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients. In our most recent installment, we discuss why leading PE firms are choosing to engage specialized executive search firms over larger generalist recruiting firms.
Learn more by watching the video below.
Interested in connecting with a specialized recruiter or any other type of third party? Contact us here. You can also learn more about the specific ways we drive value for PE firms by connecting them to the exact-fit resources they need by reading our case studies.
Interim CHRO Critically Needed To Integrate HR Department Platforms During A Merger
An interim CHRO was needed during a multi-business merger
A principal at a middle market PE firm came to us with a vital need for an interim CHRO for their new global consulting platform that was a merger of 3 companies. The platform was closing in 3 to 5 days, our client needed the interim CHRO as soon as possible. They needed an individual to lead the merging of the new platform’s three HR departments into one. The key swimlanes included:
- Advising on future state systems
- Developing an end-to-end solution for a comprehensive compensation and benefits plan for 100+ employees
- Organizing their Human Resources Information System selection process
- Migrating off their professional employer organizations
We quickly collected the specific requirements for the interim chief revenue officer from our client
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim chief human resources officer needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of experienced HR leaders that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria. After that, we connected the client with the select pre-vetted interim CHRO candidates from our invitation-only Business Builders’ Network that fit their exact needs.
Interim CHRO hired to lead the talent portion of the merger
Twenty-four hours after our initial scoping call, we introduced the PE firm and portfolio company to two PE-grade HR executive candidates. Both of the candidates had relevant functional, geographical, and middle market PE firm experience. After meeting with each of the candidates, our client selected their ideal choice. The interim executive was onboarded within the needed timeframe and successfully managed all HR aspects of the merger.
BluWave is here to help
We have a deep bench of PE-grade, pre-vetted interim CHROs that match your exact needs. Not sure if using an interim CHRO is right for your business? Check out our blog post highlighting some of our most common use cases for this critical resource. If you have an immediate need to hire an interim CHRO, let us know and we’ll connect you with the perfect resource for your needs.
Human Capital Forum Recap | May 2022
Every quarter we bring together top PE HR and talent executives to discuss current industry topics and to offer talent leaders in private equity the chance to gather, share intel, and decompress with one another. In our most recent event, we discussed many topics and listed our top takeaways below.
These forums follow Chatham House Rules, so listed below are high-level takeaways only. Are you in private equity and interested in joining fellow leading PE professionals during our next Human Capital Forum? RSVP for our next event on August 24th.
Resource scarcity:
- All firms are facing the impact of this in some way. Here are a few ideas for addressing this challenge:
- Lean into interim execs to professionalize certain business areas immediately post-acquisition, steady the ship while a more permanent search takes longer than it has historically, and/or serve as a “try before you buy” resource.
- Get clarity on the “must-have” vs “nice to have” qualification of candidates from the hiring teams (portco execs or deal team). Everyone wants LeBron, but would you settle for Kevin or Steph? Evaluate possibilities to reassign work elsewhere in the business or settle with a 9/10 fit candidate.
- Line up third-party resources as early as possible to ensure they aren’t booked.
- Streamline the recruiting process, especially when you know the candidate may receive multiple offers.
Developing current talent:
- Given how hard it is to get top talent in place, many firms and companies are trying to solve for it by developing more junior talent to step into exec roles.
- Human capital teams are creating development and training plans that are broadly applicable to all portcos and can be tailored based on the company, position, and makeup/structure of the exec team.
- Each business is unique, but there are common experiences in talent development that can cut across groups. Listen to employees to determine what type of development they want (coaching, training, continuing education, etc.).
Managing relationships with specialized recruiters:
- In BluWave’s recently published Q1 Insights report, specialized recruiters were a top use case on the BluWave Value Creation Index, emphasizing the importance of partnering with recruiters who already know the top players with the right skills for their specific needs.
- Sometimes it may be helpful to consider a recruiter directly adjacent to the industry/functional area you are seeking, as they may approach the search differently.
- Additionally, when presenting search firm options, it is helpful to share multiple options with the hiring manager, so they can find the best fit for them.
We thoroughly enjoyed the fruitful conversations that occurred during this recent gathering of PE human capital professionals. If we can be of assistance during this busy time, please let us know.
Additionally, you may be interested in checking out some of our human capital specific resources, which can be found here:
Immediate Board Member for CEO Support with Niche Expertise
Service Area: Board Member
Client Type: Lower-Middle-Market PE Firm
Service Provider Type: Senior Advisor
Industry: Manufacturing
The Need
Manufacturing Company Board Member
A Partner at a LMM PE firm came to us with an immediate need for a board member for the manufacturing company they recently closed on. The PE firm bought the company from the founder and was in need of an experienced outside board member that could serve as a sounding board for the CEO, work on strategy to improve growth and help professionalize the organization.
The Challenge
Connect with Local Expert
They were in urgent need of an individual local to the area with experience in the industry, experience in transitioning a family-owned business to a professionally managed organization and the ability to commit to more than quarterly board meetings.
How BluWave Helped
Select Pre-Vetted Board Members Presented
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade board member needs. BluWave utilizes technology, data and human ingenuity to pre-map, assess, monitor and maintain deep pools of board members that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria and then identified a select few pre-vetted board members from our invitation-only Business Builders’ Network that fit their exact needs.
The Result
Accelerated Profitability, High-Valuation Sale
Quickly after the initial scoping call, the PE firm was introduced to the first identified exact-fit board member for their needs. After being presented with the select few options, the client selected their ideal choice. The PE firm was able to confidently engage the individual who provided the coaching and support the portco’s CEO needed, helping professionalize the organization and providing support for their strategy and growth needs.
We are uniquely equipped to move quickly for midmarket companies. We have a network of thousands of PE-grade individuals, specifically geared for midmarket companies, that we can tap into in order to connect a firm with the exact-fit board member they need.
-BluWave Consulting Manager
Event Recap: PEI Operating Partners Human Capital Forum 2022
Our team recently had the pleasure of sponsoring the 2022 PEI Operating Partners Human Capital Forum in New York. In the below video, Katie Marchetti, BluWave Managing Director, recaps her key takeaways from the conference as a whole as well as the panel she moderated. Key takeaways include:
- CHROs are on the rise at both the portco & firm level
- Human capital leaders are working with deal teams more in diligence to ensure alignment
- Many firms are leading with data on the human capital front
We support more than 500 leading private equity firms in their human capital needs by placing interim CHROs, connecting them with specialized recruiters, introducing them to HR diligence providers, & more. To learn more about how we support PE human capital needs, visit our PE Human Capital Resources hub.
If you have a human capital need or any other need we can support, contact us here. Additionally, if you are a PE talent professional, be sure to join us and other leading PE talent professionals at our next virtual PE Human Capital Forum on May 4th by registering here.