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Over the past month, I’ve had the opportunity to meet with 40 private equity firms, ranging from UK-based VCs to large-cap global funds, to discuss their hiring needs across their portfolio businesses. It has been great to reconnect with the market and hear their thoughts on what lies ahead.
The key takeaways are clear: optimism is rising, and technology & data talent are high on the agenda.
1. Optimism for 2025
As we move into 2025, deal flow is expected to pick up. Recent data from Preqin shows that global private equity deal activity is projected to increase by 10-12% in 2025, reflecting a more favourable investment climate. This is translating into greater demand for skilled professionals to help drive transformation within portfolio companies.
Statistics aside, everyone I’ve caught up with since my year off seems a lot more positive about the state of the market and the opportunities ahead.
2. Focus on Technology and Data Talent
A recurring theme across all meetings has been the emphasis on hiring top-tier talent in technology and data, both within the funds themselves and their portfolio businesses. According to a recent Harvard Business Review report, 70% of PE firms have expressed a need to strengthen their technology and data capabilities in 2025. This underscores the pivotal role that data-driven decision-making and digital transformation will play in driving growth and value creation across industries.
3. Rise of the Data Operating Partner
One interesting trend I’ve observed is the increasing use of roaming Chief Data Officers (CDOs) by private equity firms of all sizes. While the role of CFOs and CTOs has long been common among funds, more PE firms are deploying CDOs to help oversee data strategies across their portfolios. According to a recent McKinsey study, 40% of PE firms now utilize a Data Operating Partner model, a significant rise from just 20% in 2020. This reflects the growing recognition that data management and analytics capabilities are as critical to portfolio performance as traditional financial and technical expertise.
4. Interim Management Gains Traction
There is a growing reliance on interim professionals in PE-backed businesses, particularly in technology and transformation roles. As portfolio companies look for flexible expertise to drive change, interim hires are becoming a go-to solution.
Recent changes in National Insurance have made interims even more cost-effective for PE firms. With the rise in the NI threshold, interim professionals now offer up to 15% cost savings compared to permanent hires in some cases. This has made interim talent an increasingly attractive option for funds looking to execute rapid transformations while managing costs effectively.
It has been great to catch up with the PE community in the past few weeks, and a heartfelt thank you to the funds that have already engaged with Denison Nunn on our first mandates.