Function: Human Capital

Human Capital Forum Recap | December 2022

December 21, 2022 Delaney Walker

Every quarter we gather human capital professionals from private equity firms to discuss current industry topics and to offer peers the chance to gather, share information, and decompress with one another. In our most recent event, we gathered to discuss top trends in 2022 and top areas of focus for 2023.

These forums are for human capital professionals at private equity firms only and follow Chatham House Rules, so listed below are high-level takeaways only. If you are a human capital professional in private equity and interested in joining fellow human capital professionals at our next PE Human Capital Forum,  RSVP here.

Top Trends in 2022

  • Human capital professionals in PE are playing a wide variety of roles within PE firms and for portfolio companies:
    • The dynamic economy and labor market resulted in constantly shifting priorities throughout the year which has led to human capital professionals having to lead varying initiatives from retention & recruiting to organizational design.
  • Recruiting and retention:
    • Certain sectors are experiencing higher turnover than others and HR leaders have been charged with identifying root causes for turnover and then offering solutions.
    • PE human capital professionals have been spending time helping portcos clearly portray their brands to help in recruiting efforts.
  • Leadership and talent upgrading:
    • In portcos where turnover stabilized, PE human capital leaders have been able to spend more time on leadership and talent assessment.
    • Proactive PE firms are using market conditions as an opportunity to upgrade talent for the long term, including bringing in wartime generals in place of peacetime ministers. Interim executives and specialized recruiters have been common tools to execute these initiatives.

2023 Top Areas of Focus

  • Quantifying and communicating human capital initiatives:
    • Human capital leaders are using data, key performance metrics, and tools like scorecards to illustrate the value they are adding and/or progress being made within the portfolio.
  • Pay transparency:
    • Upcoming pay transparency rules are expected to have a meaningful impact on how companies recruit employees across the country. PE human capital professionals are getting up to speed on these new rules and making sure their portfolio companies are ready to comply.
  • Leadership to navigate tough economic conditions:
    • PE firm human capital professionals are supporting the evaluation of organizations to make sure they have the right players in the right seats, particularly with senior executives and one level down. They are encouraging portco leaders to be prepared to upgrade talent where needed and/or equip teams with leadership coaching to enhance skills if possible.

We thoroughly enjoyed these thought-provoking conversations that occurred during this recent gathering of PE human capital professionals. If we can be of 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:

Recruiter for Interim Controller Critically Needed

Firm had immediate need for interim finance recruiting firm with SaaS experience

A PE partner came to us with a vital need for a recruiting firm to place an interim controller in their software portco. The recent departure of their previous controller and senior accountant left the PE firm in urgent need of an interim controller who could come in, take the reins, and assess the function while the PE firm searched for a fulltime hire. With the task beyond the internal recruiter’s reach, the firm was seeking a recruiting service that could identify interim candidates who had controller experience in other PE-backed portcos, familiarity with the company’s systems, relevant industry experience, the ability to quickly ramp up in the role, and the potential to be a rent to own hire.

BluWave identified top recruiting firms from pre-vetted network

Leveraging our founder’s 20 years in private equity and our experience working on thousands of projects with 500+ PE firms, we have extensive frameworks for assessing PE-grade recruiting needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of 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 pre-vetted recruiters from our invitation-only Intelligent Network that fit their exacting needs.

Client quickly sourced the needed controller thanks to the recruiter BluWave provided

The day after the initial scoping call, the PE firm and portfolio company were introduced to a PE-grade recruiting firm that specialized in finance and accounting with experience recruiting for SaaS businesses. The PE firm engaged the provider and was able to quickly source a controller with relevant experience for the SaaS portco.

Interim CFO urgently needed for prep for sale process

PE firm urgently needs an interim CFO to help with prep for sale

A PE managing partner came to us with a critical need for an interim CFO to lead their software portco through a sale process. Hoping to sell within the next 3 to 4 months, the managing partner was urgently looking for someone who could immediately come in to the portco, take point on gathering essential documentation for sale, manage financial projections, and serve as a leader within the portco during this transitional time. The PE firm quickly needed a PE-grade interim CFO who was available for the next 4-6 months, had deep SaaS expertise, and was able to travel onsite several days a month.

BluWave has pre-vetted providers matching client’s needs

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade prep for sale needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim CFOs 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 CFOs from our invitation-only Intelligent Network that fit their exacting needs.

Firm engages interim CFO and begins prep for sale

The day after the initial scoping call, the PE firm and portfolio company were introduced to two PE-grade interim CFO that specialized in helping software companies prepare for sale. The client selected their ideal choice. The firm engaged the interim executive and was able to confidently proceed with their prep for sale process thanks to the leadership of the CFO we connected them with.

In the Know: The Importance of Interim CFOs

October 27, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from the hundreds of PE firms we work with. In our most recent installment, Erez Schnaittacher, BluWave vice president of client coverage, shares the importance of interim CFOs and why they are a vital resource all PE firms should be taking advantage of. Learn more by watching the video below.

Interested in connecting with interim CFOs? Contact us here to quickly get connected to the exact-fit interim CFO you need.

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Video transcript:

The CFO role is one of the most critical seats in a business. The position plays a key role in ensuring that a business is strong and if PE-backed, that the investment is successful. Because this seat is vital to a company’s success, it is important that it is not left open, and is also filled by someone who possesses the right skillset to execute on the demands that come with being a CFO.

To ensure that both of these are always the case, PE firms often turn towards interim CFOs. At BluWave, we equip our private equity firm clients with interim CFOs for various due diligence, value creation, and prep-for-sale needs. Here are some of the most common use cases for bringing in interim CFOs:

Number one, unanticipated departures. When CFOs unexpectedly resign, it can leave a company’s finance function in chaos. We help PE firms combat this by providing them with exact-fit interim CFOs who can quickly step in, fill the shoes of the role, and keep the ship steady while the search for a permanent placement kicks off.

Number two, longer than normal hiring processes. Even when a CFO seat is expected to be vacant within a certain timeframe, sourcing a candidate to step in at the exact time you need them to can be challenging. With hiring processes taking longer than normal, interim CFOs can help bridge the gap, giving you extra time to ensure you hire the best-fit person for the job.

Number three, professionalizing new portcos’ finance functions. We are supporting many PE firms as soon as a deal closes, by supplying them with interim CFOs. These firms are bringing in these individuals to help new portcos’ finance functions understand what it means to be PE-grade, and help them get the right monthly performance packages in place to ensure that the PE firm is getting the info it needs.

And finally, number four, prep for sale processes. Our clients bring in interim CFOs to respond to diligence requests, assess data, and pull reports prior to a sale. By bringing in an extra set of hands to take care of the extra workload that comes with a sale process, FTEs are freed up to maintain focus on keeping the daily routines going, without causing a delay on the sale process. The modern-day M&A process is fast and furious, valuations decline the second you have to hit the pause button, making it crucial to keep the momentum.

Interim CFOs are one of the most versatile and useful resources available to private equity firms. Hundreds of leading firms come to us with their interim CFOs because of our ability to know before they need, hone in on individuals that meet their specific, unique criteria, and quickly connect them to the select few that are exact-fit.

If we can support your interim CFO needs, please contact us at insights@bluwave.net.

Interim CFO Crucially Needed for Portco Carveout

Firm needs interim CFO to lead carveout

A principal at a PE firm came to us with a critical need for an interim CFO to lead the carveout of a manufacturing company that they had just signed on. With closing occurring in 60 days and a 12-month TSA that would then begin, the firm urgently needed an interim CFO that could be dedicated to the carveout infrastructure. The firm needed an individual who could perform advanced carveout tasks but was also willing to roll up their sleeves and be hands-on in tasks like setting up the GL architecture. It was critical that the firm found an interim CFO with a deep track record in PE, carveout experience, the ability to be onsite 3 days per week, experience in the manufacturing industry, and functional expertise in a wide variety of financial and accounting areas in order for the carveout to be smoothly executed.

BluWave understands unique need & identifies exact-fit interim CFOs in network

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade carveout-specific interim CFO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of carveout-focused interim CFOs 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 CFOs from our invitation-only Intelligent Network that fit their exacting needs.

Firm engages interim CFO and successfully proceeds with carveout

Within 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to two PE-grade interim CFOs with extensive carveout experience and industry expertise. The client selected their ideal choice. The PE firm was able to confidently and quickly engage the interim CFO and trust them to lead the carveout thanks to them already being BluWave-vetted.

Leadership coach vitally needed for new CFO

Leadership Coach needed to mentor new CFO

A PE firm principal came to us with a critical need for a CFO consultant for their manufacturing portco. Since their seasoned CFO left the company around a year ago, a young, less experienced CFO entered the leadership role. Having never been a CFO before, the firm needed an executive coach who could provide the young CFO with leadership training and serve as a mentor to them to help them get up to the speed of a C-suite role. The firm urgently needed someone with experience as a CFO in a PE-backed company, knowledge in the alcohol beverage manufacturing field, and who was willing to be onsite for 20 hours a week.

BluWave finds exact-fit CFO consultant with industry expertise

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade executive coaching needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of executive coaches 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 executive coach from our invitation-only Intelligent Network that fit their exacting needs.

Firm confidently engages PE-grade CFO consultant

Quickly after the initial scoping call, the PE firm and portfolio company were introduced to two PE-grade executive coaches that specifically worked with CFOs in the manufacturing industry. The client selected their ideal choice, engaging an exact-fit exec coach with a consumer manufacturing background, multiple referrals from PE-backed companies, and availability to travel to the needed location. The PE firm was able to confidently move forward with the new CFO knowing that he was getting the training he needed to get caught up to speed.

Interim CHRO Urgently Needed for Software Portco

Firm needs top interim CHRO for fast growing portco 

A managing director came to us with a critical need for an interim CHRO for their software portfolio company. Having recently experienced meaningful growth through M&A, the portfolio company urgently needed a top interim CHRO to act as a strategic HR partner to the CEO and Board during the integrations. The managing director was looking to match the portfolio company with an interim CHRO who could drive cultural alignment, improve organizational design, support M&A integration, and engage a deeper pool of talent, among other things. They quickly needed a specific hire, with PE experience, industry knowledge, and M&A background. 

BluWave identifies three pre-vetted interim CHROs with industry related background 

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade Interim CHRO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim CHROs 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 executives from our invitation-only Intelligent Network that fit their exacting needs. 

Portco engage exact-fit CHRO for interim position

Quickly after the initial scoping call, the PE firm and portfolio company were introduced to three PE-grade interim CHROs that specialized in M&A in the software industry. The client selected their ideal choice and was able to confidently move forward with a strategic thought partner to lead HR in the fast-growing portco. The company ultimately ended up hiring the interim CHRO for the full-time role.  

Interim CHRO Urgently Needed for Professional Services Portco

Interim CHRO needed for high growth, professional services portco 

A PE firm managing director came to us with a critical need for an interim CHRO for their professional services platform. Combining three companies to make the platform, the firm urgently needed a PE-grade interim head of HR to deal with contracts, advise future state systems, reconfigure benefits plans, help them migrate off their PEO and stand up their own HR function, and more. Closing on the platform in the upcoming week, the managing director quickly needed to fill this role with an interim who had industry expertise, previous experience with M&A and PE-backed middle market companies, as well as the ability to execute the needed tasks at a high level.

BluWave uses pre-vetted network to find top CHRO options

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim CHRO 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 pre-vetted CHRO from our invitation-only Intelligent Network that fit their exacting needs.

Firm engages chosen interim CHRO to drive success in portco

Within less than 24 hours of the initial scoping call, the PE firm was introduced to three PE-grade interim CHROs that specialized in M&A and the professional services industry. The client selected their ideal choice. Thanks to BluWave, the PE firm was able to quickly & confidently appoint a top interim CHRO to handle the transitions involved in the platform close as well as lead the HR strategies moving forward.

Critical CHRO To Step in as Interim Support

Strong interim CHRO needed to lead HR in healthcare services portco

A proactive healthcare services company came to us with a critical need for an interim CHRO. With the current head of HR leaving and the recruiting process taking longer than normal, the healthcare services company needed a strong HR leader with role and industry expertise to come in and provide support during the interim, an expected time frame of 3-6 months. Already with ~1000 employees and additional acquisitions on the horizon, they urgently needed a local HR leader that could be boots on the ground in HQ during the pandemic.

BluWave responds to niche need by providing top interim CHRO candidates

Leveraging our experience working with thousands of proactive companies, we have extensive frameworks for assessing interim CHRO 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 highest standard. We interviewed the company to understand their specific key criteria, and then connected them with the select pre-vetted interim CHRO candidates from our invitation-only Business Builders’ Network that fit their exact needs.

The company selected their ideal choice and filled the role with a top hire

Quickly after the initial scoping call, the healthcare services company was introduced to four top-notch interim CHRO candidates that specialized in healthcare services. The client selected their ideal choice, allowing them to quickly retain this critical role without wasting time or cost. The candidate ended up being such a great fit thanks to their background, that they were flipped to the organization’s permanent position after only three months of serving as an interim resource.