1、Portfolio Company Talent 2025Thought leadershipPortfolio Company Talent 2025 Altrata.February 2025.This publication is for your information only and is not intended as an offer,or a solicitation of an offer,to buy or sell any product or other specific service.All information and opinions indicated a

2、re subject to change without notice.Brian Alster Chief Executive Officer Manuel Bianchi Global Head of SalesOlivia Logan Vice President,Marketing&Corporate DevelopmentAmanda Cifone Vice President,MarketingLead authors Maya Imberg Senior Director,Head of Thought Leadership and AnalyticsMaeen Shaban D

3、irector of Research and AnalyticsBettina Lengyel Associate Analyst,Thought Leadership and AnalyticsDesignDawn Lastre Visual Communications SpecialistContents01 Executive summary 402 Introduction 503 Leadership:a key component of value creation 704 Todays portfolio company leadership teams 9Gender di

4、versity 10Age and gender diversity over time 13Time in role 14Type of appointment 15Professional and sector background 17Corporate experience 20Education 2205 Methodology 2406 About Altrata 25Altrata|Portfolio Company Talent 2025Executive summary01The evolving nature of value-creation strategies mea

5、ns private equity(PE)firms are now increasingly seeking a broader range of competencies for leadership team roles.Firms that are able to identify,hire,develop and retain the top talent stand to benefit considerably in driving the performance of their portfolio companies and delivering a profitable e

6、xit.These executives also have valuable connections that bring wider value to the PE firm in terms of recruitment,due diligence and business development.Previous senior-level experience in the tech,business services,finance and private equity sectors is particularly valued.Some 54%of US portfolio co

7、mpany leadership team executives have previously held a senior position in the tech sector,followed by 30%and 25%in business services or financial services respectively.Healthcare and pharma/biotech experience is also common because of the need for specialized knowledge when working in these sectors

8、.Some 17%have previous senior experience of working directly in a PE firm,indicating an established crossover pathway to a portfolio business.Portfolio companies in five major markets in North America and Europe continue to show a pronounced gender imbalance in their leadership teams.PE firms in the

9、 US exhibit the highest female share(24%),marginally ahead of Canada;the share falls to a fifth in the UK and France,and just 14%in Germany.Gender diversity is also generally lower than at listed companies.There is a huge variation in the gender split across the prominent C-suite roles,with women ac

10、counting for only 11%of US portfolio company CEOs but the majority of CHROs and CMOs.Most US portfolio company CFOs and CEOs have experience of mergers and acquisitions(M&As).Among CFOs,62%have buyer-side experience and 63%have seller/target experience.Such experience can often be a major factor in

11、the recruitment process portfolio companies,backed by their PE owners,may acquire other companies before they eventually look to exit.In addition,around half of CEOs and CFOs have previous senior-level C-suite portfolio firm experience.Around 70%of current leadership team members(and 80%of CMOs)at U

12、S portfolio companies were external appointments.The respective shares for the UK are slightly lower but follow the same trend.This stands in contrast to publicly listed companies(small cap and especially large corporates),which lean towards internal hires for senior executive roles(60-70%are intern

13、al appointments).In the US,this external share has declined by more than 10 percentage points from 83%in 2014,with a smaller drop in the UK.Almost half of US portfolio company CFOs have an MBA degree,the highest share among key C-suite roles.Still,this is not so far ahead of the third of CMOs,COOs a

14、nd CEOs who have MBAs.Only CHROs fall below a third at 23%.When it comes to alumni in general,Harvard University supplies the highest number of todays portfolio company CEOs and ranks second,behind the University of Pennsylvania,for CFOs.Altrata|Portfolio Company Talent 2025|4 02IntroductionIn a shi

15、fting landscape,private equity(PE)firms are acutely aware of the critical role of leadership teams1 in driving the performance of their portfolio companies and delivering a profitable exit.As value-creation strategies evolve,firms are increasingly seeking a broader range of competencies for leadersh

16、ip team roles.In this complex and highly competitive market,firms that are able to identify,hire,develop and retain the top talent stand to benefit considerably.Altratas Portfolio Company Talent 2025 the second edition powered by BoardEx data analyses the leadership teams of portfolio companies in f

17、ive major markets:the US,the UK,Canada,Germany and France.Our research encompasses all of the C-suite roles,with a focus on the thousands of current chief executive officers(CEOs)and chief financial officers(CFOs),the key decision-makers with responsibility for implementing a PE firms investment str

18、ategy to its successful conclusion.We begin with an overview of developments in the global PE industry and,noting a more positive outlook heading into 2025,we discuss the impact on talent recruitment and the pivotal role of leadership teams in the specialized environment of PE-owned firms.We discuss

19、 the large number of connections that most senior C-suite executives have to people in leadership positions in general,and the wider benefits these bring to the PE firm itself,aiding recruitment,due diligence efforts and facilitating business development.Drawing on BoardExs unique and extensive data

20、base,we examine the key characteristics of portfolio company leadership teams,with a focus on those in the US and the UK.We explore the teams age and gender profile,the time these executives spend in their respective roles and the share of internal and external appointments,also detailing how these

21、characteristics have changed over the past decade.We draw out key themes throughout and identify the main similarities and contrasts between C-suite members at listed small-cap and large companies and also between key C-suite roles.We conclude with a deep dive into the professional and higher educat

22、ion backgrounds of CEOs and CFOs at PE-owned firms in the US,detailing their sector expertise and corporate action experience.Altratas Portfolio Company Talent 2025 offers a unique insight into the group of senior executives who lead and steer these companies,making it an essential read for firms lo

23、oking to make the most of their talent management and acquisition strategies.1 Leadership teams can also be called executive committees,management boards or the C-suite,among other terms.These teams usually include executive directors as well as the top layer of management in a company.Altrata|Portf

24、olio Company Talent 2025|5 How do we gain insight on the individuals leading portfolio companies?This report uses Altratas BoardEx and its unique and proprietary Global Leadership Database,which covers board and non-board members,C-suite executives,senior leaders and professional advisers.For our an

25、alysis,we study the individuals who make up the current leadership teams at portfolio companies across five major markets in North America and Europe:the US,Canada,the UK,Germany and France.To ensure we examined the most up-to-date set of portfolio companies,we restricted our criteria to those that

26、had received at least one round of PE investment since 2018.In total,our research encompasses almost 12,000 companies and 55,000 individuals.For further details,please see the Methodology.Terms used in this reportPortfolio company For the purposes of this report,a portfolio company is a company(publ

27、ic or private)that is fully or partially owned by a PE firm.Such companies are also referred to as PE-owned firms.Leadership team Corporate leadership teams are sometimes referred to as the C-suite,executive committees or management boards.They usually include executive directors the most prominent

28、being the CEO as well as a corporations top layer of management.The leadership team includes executive chairs(but not non-executive chairs).Altrata|Portfolio Company Talent 2025|6 IntroductionThe leadership team:a key component of value creation03Opportunities and challenges in a shifting PE landsca

29、peThe global PE market continues to offer significant opportunity.Renewed growth is a key theme,following a subdued 2024 and a challenging period following the boom period of 2021-22.Deal activity is expected to accelerate,helped by declines in the cost of capital as well as a growing availability o

30、f funds and a backlog of portfolio companies seeking an exit after having been deferred in recent years2.In this shifting landscape,the environment in which PE firms operate has undergone considerable upheaval,with implications for the more established approaches to value creation and talent acquisi

31、tion at the portfolio companies they own.With longer holding periods for portfolio firms,among other factors,operational transformation has become increasingly important.While leverage and expanding multiples remain critical to value creation,revenue growth and margin improvement have grown signific

32、antly in prominence as contributors to the internal rate of return(IRR)3.This has repercussions for the types of skills and experience needed of those leading these portfolio companies.2 PwC,2025 Outlook:Global M&A Trends in Private Capital.3 Kearney,The 2025 Outlook for Private Equity.Altrata|Portf

33、olio Company Talent 2025|7 Identifying and recruiting the right talentA reassessment of optimal value-creation strategies for portfolio companies such as a stronger focus on operational efficiency,new market expansion,more diverse secondary deals,greater reliance on private credit,or the embrace of

34、new technologies such as generative AI implies a shifting landscape for the recruitment of talented leadership teams.The conventional approach of targeting experienced individuals in banking and finance to oversee a leverage-focused restructure and rapid exit is no longer the default route.The evolv

35、ing nature of value-creation strategies means that PE firms are now increasingly seeking a broader range of competencies for senior C-suite roles4.Moreover,the traditional pool of potentially available executives is becoming increasingly stretched,given the rise in number of PE-owned portfolio firms

36、 in the past decade.Alongside this more nuanced approach to leadership team recruitment is a growing acknowledgement in PE firms that,more than ever,selecting the right talent(and at the right time)is critical.The quality of portfolio company management is commonly viewed as one of the key determini

37、ng factors in the relative success or failure of any investment deal.Having the wrong leadership in place can come with a heavy price.Making the right talent decisions across many portfolio companies and under tight timelines can be far from straightforward.An appropriate leadership team,or the majo

38、rity of individuals,may already be in place in the acquired company or,as is often the case,the PE firm may look to recruit a number of roles internally or externally.PE firms must define the ideal experience and capabilities for each role,and ensure the total sum of the team fits in with the firms

39、overall strategy for the portfolio company.To do this,PE firms draw upon both executive search and in-house teams to recruit new talent.In addition,PE firms are increasingly using in-house talent teams that focus on supporting the portfolio companies themselves with talent assessment,building and nu

40、rturing.Connections as added valueIn addition to the value they bring to the portfolio company they helm,the individuals that make up the leadership team offer a number of other,sometimes overlooked,benefits to the PE firm owner.Portfolio company leadership teams are well connected to large numbers

41、of senior business decision-makers.By leveraging these networks,both their direct and second-degree connections,these individuals become a highly valuable source of commercial opportunities.These networks of connections are also powerful enablers for PE firms on both the recruitment and business dev

42、elopment fronts.In relation to recruitment,such connections can be useful for carrying out due diligence on a new hire.The networks of these portfolio company leaders will also,on occasion,include connections to high-potential candidates,shortcutting the first-approach process for PE firms and speed

43、ing up the executive recruitment process.Finally,these leaders networks can also be used to find a warm introduction to a relevant executive at a potential target company,enabling both due diligence and eventual deal closures.4 Samuel Robberts,June 27 2024,LCAP Group,Private Equity is Evolving-its T

44、alent Strategy Must Too.Portfolio company executives networks of connections can aid both recruitment and business development efforts.Altrata|Portfolio Company Talent 2025|8 The leadership team:a key component of value creationTodays portfolio company leadership teams04Successful portfolio company

45、leaders must be able to navigate all manner of commercial and operational challenges,while driving their company to achieve high performance.In the leadership team,the CEO and CFO are particularly important in aligning the business with the PE firms strategic objectives and,ultimately,shaping it for

46、 a profitable exit.In this section,we highlight the key characteristics of todays portfolio company leadership teams.The focus is primarily on PE-owned firms in the US and the UK but,on occasion,also Canada,Germany and France.We examine the age profile and gender distribution across the major C-suit

47、e roles,the type of appointment and duration in their current position,and their professional experience and educational background.In addition to country comparisons,we draw out key trends over the past decade and highlight the main differences(and similarities)between portfolio company leadership

48、teams and their peers in publicly listed small-cap firms and large corporates.Altrata|Portfolio Company Talent 2025|9 Rising gender diversity,but still a pronounced imbalance in top leadership rolesFemale representation in portfolio company leadership teams is slowly rising,although a large gender i

49、mbalance persists with women holding only one in five C-suite positions on average.In our analysis of five major markets,portfolio companies in the US exhibit the highest female share(24%)across their leadership teams,marginally ahead of Canada.Approximately one in five C-suite members in the UK and

50、 France are women,with the share falling to just 14%in Germany.Aside from underlying corporate and social trends,a factor contributing to low female representation across the board is often a preference among PE firms for potential leaders to have previous experience at a portfolio company,limiting

51、the size and diversity of the talent pool5.Gender diversityWomen on leadership teamsProportion of portfolio company leadership team roles held by womenNote:Corporate leadership teams are sometimes referred to as the C-suite,executive committees or management boards.They usually include executive dir

52、ectors the most prominent being the CEO as well as a corporations top layer of management.It is also worth noting that each country has its own distinctive corporate governance legislation.Source:BoardEx,an Altrata company,January 202523.9%US23.2%Canada19.8%France14.3%Germany21.5%UK5 LCAP Group,2024

53、 Leadership Capital Report.Altrata|Portfolio Company Talent 2025|10 Todays portfolio company leadership teamsCompany ownership and size do matterThe share of female senior executives at PE-owned firms is generally lower than at listed companies.Female C-suite representation among US portfolio busine

54、sses is similar to that of firms on the S&P SmallCap 600 but below the 28%share at S&P 500 companies.The imbalance is more pronounced in the UK,with the proportion of women in portfolio company leadership teams lower than the 23%at FTSE SmallCap firms and some 10 percentage points below the 31%share

55、 at FTSE 100 corporates.This points,in part,to a scaling issue,where factors such as more restricted training budgets at smaller firms add to the challenge of giving sufficient numbers of women the skills they need to compete with their male counterparts for leadership roles.Portfolio companies lag

56、behind listed companies in the gender diversity of their leadership teams.Gender diversity by company size and ownershipLeadership team roles held by women(%)Note:The S&P SmallCap 600 Index seeks to measure the small-cap segment of the US equity market.The 600 companies included must have an unadjus

57、ted market capitalization of$1bn to$6.7bn.The FTSE SmallCap Index consists of companies with a market capitalization below the FTSE 250 but above a fixed limit(the lower limit is reviewed periodically).There are approximately 211 companies in the index,with a median net market capitalization of arou

58、nd 220m.The indices do not overlap with the S&P 500 or FTSE 100.Source:BoardEx,an Altrata company,January 2025USS&P 50028.0%FTSE 100UK23.9%24.4%Portfolio companiesS&P SmallCap 600Portfolio companiesFTSE SmallCap21.5%23.3%31.4%Altrata|Portfolio Company Talent 2025|11 Todays portfolio company leadersh

59、ip teamsAmong the key C-suite roles,there are too few female CEOs,COOs and CFOsLeadership roles with the highest executive power remain heavily male dominated,with women accounting for only 11%of US portfolio company CEOs.There is a huge variation in the gender split across the prominent C-suite rol

60、es of PE-owned businesses.More women invariably hold the position of head of human resources,while there is a broadly even distribution in the lead marketing role.In contrast,female representation is only around 15-20%in the more influential decision-making positions of chief operating officer(COO)a

61、nd CFO.At the very top,women account for just one in 10 portfolio company CEOs.This share has risen only slowly over the past decade(up from 8%in the US)and is on a par with the low level of female CEO representation across major and small-cap listed companies in the US.Improvements have been greate

62、r at UK portfolio companies,but from a lower starting level,with the current CEO share only marginally higher at 12%.It is a reminder of the cultural and institutional obstacles to gender balance that persist at the highest levels,as well as a reflection of a still relatively limited pool of suitabl

63、y qualified and experienced female senior executives6.Gender diversity among the key C-suite rolesNote:CEO stands for chief executive officer;CFO for chief financial officer;COO for chief operating officer;CMO for chief marketing officer;and CHRO for chief human resources officer.Some roles are more

64、 prevalent than others across companies;for example,virtually every portfolio company has a CEO and CFO,but not all have a COO or CMO.Source:BoardEx,an Altrata company,January 2025USUKProportion of women at portfolio companies by C-suite role11.9%10.9%CEO15.6%16.6%CFO80.1%77.3%CHRO50.4%51.5%CMO22.0%

65、22.1%COO6 McKinsey&Company,The State of Diversity in Global Private Markets 2023.Altrata|Portfolio Company Talent 2025|12 Todays portfolio company leadership teamsThe average age has risen while gender diversity has improved from a low baseThe average age of leadership team members has risen compare

66、d with a decade ago in both the US and the UK.This partly reflects the more complex business environment in which many portfolio companies operate,with PE firms placing a greater onus on the merits of accumulated experience and professional connections in guiding their investment,especially in the p

67、rominent CEO and CFO roles.In addition,leadership teams of portfolio companies are slightly younger,on average,than their counterparts in listed firms(around two years younger than at listed businesses on the S&P 500 and the S&P SmallCap 600 indices).Age and gender diversity over timeAge and gender

68、diversity a decade onAverage age of portfolio company leadership team membersSource:BoardEx,an Altrata companyUKUSProportion of portfolio company leadership team roles held by womenUK11.4%21.5%202420142024201423.9%10.4%US202420142024201449.847.054.147.6The past decade has seen a steady rise in femal

69、e representation on leadership teams.The share of women in C-suite roles at US-owned portfolio companies has more than doubled from a lowly 10%in 2014,with a similar(if slightly weaker)development in the UK.This upward trajectory reflects a gradual shift in corporatist views and structures,changing

70、investor attitudes towards diversity and the growth in female entrepreneurship7.This slowly expanding pool of senior executive women will encourage the professional ambitions of other female workers(and prospective external leadership candidates),although much remains to be done to approach a sembla

71、nce of gender parity across the leadership teams of PE-owned companies.7 Heidrick&Struggles,“Private equity focus:insights from women CEOs at PE-backed companies.”Altrata|Portfolio Company Talent 2025|13 Todays portfolio company leadership teamsCEO tenure tends to be far longer than that of other ke

72、y C-suite roles.8 EY,Annual Report on the Performance of Portfolio Companies,16th Edition,Private Equity Reporting Group,January 2024.9 Andy Jones,“Private equity holding periods limit fundraising and may lower valuations”,Private Equity Info,July 2024.10 Paul A Gompers,Steven N Kaplan and Vladimir

73、Mukharlyamov,The Market for CEOs:Evidence from Private Equity,National Bureau of Economic Research Working Paper 30899,January 2023.CEO tenure is significantly longer than that of other C-suite positionsCEOs at US portfolio companies have been in their current role for an average of 5.4 years.This i

74、s considerably longer than the tenure of COOs(3.5 years)and approximately double that of other key C-suite positions,including CFOs(2.9 years).It tallies closely with the typical five-to six-year hold period for a majority of PE investments8,9.For PE firms seeking to install new top management at a

75、portfolio business after its acquisition,which occurs in around 70%of cases10,this underlines the importance of identifying the“best-in-class”individual who can effectively lead and deliver on the PE firms objectives during their stewardship.A stable leadership team is a preferred scenario,and one t

76、hat will tend to improve the prospects of securing a good return on investment.However,ongoing succession planning is also important as unplanned executive turnover or a reluctance to consider new leadership should issues arise can have a significant bearing on portfolio company performance and the

77、speed of exit.Time in roleTenure by roleNote:Tenure is not complete as these roles are ongoing.Does not include potential other time in the same company in a different role.Source:BoardEx,an Altrata company,January 2025USUKNumber of years in their current portfolio company role(so far)CEO5.45.8CFO2.

78、93.1CHRO2.52.8CMO2.53.2COO3.53.7The tenure(so far)of all leadership team members at PE-owned firms averages 3.7 years in the US and 4.2 years in the UK.Across all major C-suite positions,senior executives at UK-owned portfolio companies have been in their current roles for three to six months longer

79、 than their counterparts in the US on average.This likely reflects differences in labor market structures and in underlying corporate attitudes relating to job performance and security.In both countries,the average tenure(to date)of leadership team members at PE-owned firms is similar to that at lis

80、ted small-cap companies,but around three to four months shorter than at large publicly traded corporates.Altrata|Portfolio Company Talent 2025|14 Todays portfolio company leadership teams11 See BoardExs Global Gender Diversity 2023.C-suite hires are predominantly external appointmentsAround 70%of cu

81、rrent leadership team members at US portfolio companies were external appointments,including three-quarters of CEOs.The respective shares for the UK are slightly lower,but show the same trend.This contrasts with a clear preference(60-70%)among publicly listed companies(small-cap and especially large

82、 corporates)towards internal hires for senior executive roles again,this somewhat more prevalent in the US than in the UK11.As previously noted,many PE firms move to replace often immediately,sometimes later part or all of the existing leadership of the businesses they acquire.This can be for reason

83、s of perceived competence,to signify a new start without the“old guard”,to enhance the firms visibility or to bring in individuals more closely aligned with the PE firms culture and investment strategy.This approach naturally tends to recruit from outside the portfolio business,with another factor o

84、ften being a limited pool of potential internal successors for the most senior roles,given the modest size of many PE-acquired companies.Type of appointmentDominance of external appointmentsSource:BoardEx,an Altrata company,January 2025Proportion of external appointments by portfolio company roleCEO

85、CFOCHROCMOCOOCEOCFOCHROCMOCOO76.5%79.6%71.2%79.9%64.1%USUK64.0%67.5%77.2%73.0%54.6%Internal hires for the COO role in portfolio companies,while still in a minority,are more common than for other C-suite positions.Internal promotions account for 36%of COO appointments in US-owned portfolio companies

86、and almost half of those in the UK.Given the disruptive impact of any post-acquisition overhaul of senior management,there can be a clear benefit for PE firms to place in the leadership team one or more existing employees with in-depth knowledge of the company.The COO is often the most suitable role

87、 for assisting a new CEO with the transition process as it requires familiarity with many key areas of the business,including day-to-day operational and administrative functions.Altrata|Portfolio Company Talent 2025|15 Todays portfolio company leadership teamsThough still in the majority,the share o

88、f external hires in the US has fallen by more than 10%since 2014.Appointments a decade onProportion of external appointments among portfolio company leadership team membersSource:BoardEx,an Altrata companyUSUK202420142024201469.0%82.8%70.6%64.5%69.0%82.8%70.6%64.5%External hires have fallen from a d

89、ecade agoThe proportion of external appointments to portfolio companies leadership teams has fallen over the past decade.At PE-owned firms in the US,the share has declined by more than 10 percentage points from 83%in 2014,with a smaller drop(from 69%to 65%)in the UK.This likely reflects the more tes

90、ting environment in the PE market,with the standard playbook evolving towards creating value at portfolio firms before exit,rather than just focusing on cost cutting and debt restructuring in the short term.In this sense,having one or more internally appointed C-suite members with broad knowledge of

91、 the business will,in some cases,have become a more important consideration for PE firms.It is also the case that strong growth of the PE industry over the past decade has contributed to a more limited pool of available and suitable external candidates to recruit from non-PE companies(private or pub

92、lic)at a reasonable financial cost,leading to a gradual shift towards internal promotions.Altrata|Portfolio Company Talent 2025|16 Todays portfolio company leadership teamsRelevant role experience is highly valuedSome 70%of current portfolio company CEOs in the US have previously held that position

93、at another firm,with the respective share rising to 93%in the case of portfolio company CFOs.With success in the PE sphere reliant to a significant extent on effective leadership,it is understandable that when PE firms opt to recruit for top executives,many will favor those with experience of dealin

94、g with the unique pressures and commercial challenges that come with such a role.Among the 30%of portfolio company CEOs who had never been a CEO previously,they had often accrued relevant experience in the roles of chair,COO or chief technology officer(CTO)instead.Professional and sector backgroundW

95、hat are the most common professional and educational backgrounds of C-suite members at portfolio companies in the US?Here we look at the experience they have gained over the course of their careers,their sector expertise and involvement in corporate actions.The analysis focuses primarily on CEOs and

96、 CFOs.Prior experience matters70%of US portfolio company CEOs have previously been a CEO93%of US portfolio company CFOs have previously been a CFOSource:BoardEx,an Altrata company,January 2025Altrata|Portfolio Company Talent 2025|17 Todays portfolio company leadership teamsAltrata|Portfolio Company

97、Talent 2025|17 Previous sector experience in technology,business services,finance and private equity is particularly valuedMore than half of current leadership team members at US portfolio companies held a senior executive role in the technology sector earlier in their careers.This partly reflects t

98、hat sectors broad popularity,extensive job opportunities,potential high compensation returns,and the fact that tech attracts the single largest share of PE investments.There is also typically a strong correlation between previous experience and the sector focus of todays portfolio companies:54%of le

99、adership team members have held a senior executive position in the tech sector,which ranks highest among all sectors,similarly to the 35%share that have a current C-suite role at a PE-owned tech company.A similar trend is also evident in the healthcare and pharma/biotech sectors(at lower absolute le

100、vels).In industries such as these,driven by specialized knowledge and innovation,executives with relevant sector experience will clearly bring certain benefits to a leadership team.Share of US portfolio company leadership team members by sector experienceNote:The data should not add up to 1 00%.Only

101、 the top 10 previous sectors by senior-level experience are displayed.Multiple experiences are possible and likely.Technology includes software and hardware;financial services includes banks and specialty finance.Source:BoardEx,an Altrata company,January 2025Sector experienceTechnologyBusiness servi

102、cesFinancial servicesHealthPharmaceuticals and biotechnologyPrivate equityMedia and entertainmentElectronic and electrical equipmentTelecommunication servicesGeneral retailers54.4%29.7%25.2%23.7%22.4%17.0%12.4%9.1%5.9%5.7%Current sector of leadership team members34.6%9.7%4.7%12.8%14.2%0.2%2.8%1.5%1.

103、0%1.0%Previous sector experience at the executive board,leadership,and senior management levelCurrent sector of leadership team membersAltrata|Portfolio Company Talent 2025|18 Todays portfolio company leadership teamsA third of US portfolio company leadership team executives have previously held a s

104、enior position in the tech sector,followed by almost a fifth in business services or financial services.Over a fifth of US portfolio company leadership team members have previous senior experience in either business services or financial services,despite each of these two sectors being the focus of

105、less than a tenth of PE-owned firms in the US.This is an indication of the transferable skills typically attained through exposure to senior management roles in these sectors.While sector knowledge is certainly helpful,PE firms will also look to an executives broader skillset leadership qualities,st

106、akeholder experiences,corporate achievements and personal motivations when structuring a portfolio company leadership team.This is understandable,given that the skills required and key objectives for a senior executive at a PE-owned firm are often quite different to those at a listed(or non-PE priva

107、te)company.On a related note,17%of current C-suite members have previous senior experience of working directly in a PE firm,indicating an established crossover pathway to a portfolio business and PE teams occasionally taking up interim positions in their portfolio companies when needed.Altrata|Portf

108、olio Company Talent 2025|19 Todays portfolio company leadership teamsAltrata|Portfolio Company Talent 2025|19 Around half of US portfolio company CEOs and CFOs have previous experience in the C-suite of a portfolio firm.Prior leadership experience at a portfolio company is helpful but not essentialM

109、ost of todays US portfolio company CEOs and CFOs have prior experience of working in a leadership position at another PE-owned business.Such executives have a wealth of experience,and will often have held leadership roles at PE-owned or other privately owned companies,as well as listed ones.Around h

110、alf have previously worked in the C-suite of a portfolio firm(and a large majority have held roles underneath the leadership teams of a portfolio firm).A smaller proportion around 20%of current CEOs and CFOs have some previous experience in a non-executive capacity,often fulfilling an oversight role

111、 through which a broader understanding of the industry can be gained.This again underlines the clear preference among PE companies to have in place a senior leadership team with formative experience of the specific challenges and time pressures that come with guiding a portfolio business through the

112、 hold period to a successful exit.Corporate experiencePrevious portfolio company experienceNote:The data should not add up to 100%.Multiple experiences are possible.Source:BoardEx,an Altrata company,January 2025Proportion of current US portfolio company CEOs and CFOs with previous experience of lead

113、ing portfolio companiesCEOsCFOsLeadership team role48.9%55.3%Non-executive role18.6%9.8%Altrata|Portfolio Company Talent 2025|20 Todays portfolio company leadership teamsCorporate action experience is highly valued among portfolio firm CEOs and CFOsIt is relatively common for CEOs and CFOs of portfo

114、lio companies to have previous experience of corporate actions.This is to be expected,as their primary responsibility is to implement the PE firms investment strategy,which will typically encompass a significant restructure of business operations and finance,and will often target a sale or initial p

115、ublic offering(IPO)as a desired exit route.Almost two-thirds of portfolio company CFOs have buy-side or sell/target-side M&A experience,with a slightly smaller share among CEOs.Some 63%of portfolio company CFOs have buy-side experience of M&As,with a slightly lower share(52%)among CEOs.Given the tim

116、escales involved in the PE sector and in view of the more challenging market conditions of recent years corporate deals and acquisitions by the portfolio company are often viewed as a key element in driving value creation and profit growth.For the senior executive team,previous experience of oversee

117、ing the purchase of(or merger with)a target business is,therefore,highly beneficial and can often be a major factor in the recruitment process.Previous experience from a sell/target-side perspective can be just as important when a firm is looking to make a successful exit.Often a CFO with specific M

118、&A experience will be hired to prepare the firm and optimize this journey.Corporate action experienceNote:The data should not add up to 100%.Multiple experiences are possible per type and across areas.M&A events are those with a deal value above$25m and a stake above 30%.Source:BoardEx,an Altrata co

119、mpany,January 2025Proportion by type of senior-level experience among US CEOs and CFOsCEOsCFOsIPO experience among executives atPortfolio companies15.2%22.6%S&P 500 companies12.1%5.7%S&P SmallCap 600 companies25.1%12.0%M&A experience of portfolio company executivesWith acquirer organizations51.7%62.

120、5%With seller/target organizations52.0%63.0%Almost a quarter of todays US portfolio company CFOs have experience of taking a company to public launch.This is double the share among CFOs at listed firms on the S&P SmallCap 600,and four times higher than those at S&P 500 companies.At CEO level,IPO exp

121、erience among portfolio company leaders is slightly more prevalent than at large listed corporates,but not as common as it is at small-cap firms.An IPO will not necessarily be a foremost exit strategy for PE-owned businesses,given the complexities involved,the often lengthy lead-in times,and the pot

122、ential risk of exposure to volatile market conditions.For these very reasons,a CFO and CEO with relevant experience in structuring an IPO,and presenting the acquired firm as a financially enticing prospect to investors,can be invaluable to firms actively contemplating the prospect of going public.Al

123、trata|Portfolio Company Talent 2025|21 Todays portfolio company leadership teamsA long-established path to top managementHarvard University supplies the highest number of todays portfolio company CEOs and ranks second,behind the University of Pennsylvania,for CFOs.A large proportion of CEOs and CFOs

124、 at PE-owned firms in the US obtained at least one undergraduate or postgraduate degree from a renowned US university,with considerable overlap among the top-ranked schools.Harvard accounts for a 12%share of CEOs and 6%of CFOs;the University of Pennsylvania has a 7%share for each,bolstered by its hi

125、ghly esteemed Wharton Business School;while Stanford University,Northwestern University,Columbia University and the University of California,Berkeley,also feature prominently in both listings.Massachusetts Institute of Technology is among the schools with a noticeably higher share of CEOs than CFOs,

126、with the University of Chicago displaying a reverse trend.EducationTop 15 universities ranked by the proportion of alumni among current US portfolio company CEOs and CFOsRank and proporionNote:Includes undergraduate and postgraduate degrees,not executive education.Alumni could have attained a degree

127、 from more than one institution.Source:BoardEx,an Altrata company,January 202512.4%Harvard UniversityCEOs10.3%Stanford University6.9%University of Pennsylvania6.0%Massachusetts Institute of Technology5.1%University of California,Berkeley5.0%Northwestern University4.3%Columbia University3.8%Universit

128、y of Michigan3.5%Cornell University3.0%Yale University2.9%University of Chicago2.9%University of Texas at Austin2.8%New York University2.6%Duke University2.3%Princeton University7.2%University of PennsylvaniaCFOs6.2%Harvard University5.7%University of Chicago4.9%Northwestern University4.8%Columbia U

129、niversity4.7%Stanford University4.5%University of Texas at Austin4.3%University of California,Berkeley3.6%University of Michigan3.4%Duke University3.1%Dartmouth College3.1%New York University3.0%University of Virginia3.0%University of Notre Dame2.6%University of Southern CaliforniaAlma maters1234567

130、8910=11=1113141512345678910=11=11=13=1315Altrata|Portfolio Company Talent 2025|22 Todays portfolio company leadership teamsAlmost half of portfolio company CFOs have an MBA degree,the highest share among key C-suite roles.The top 10 universities account for 60%of all current CEOs,with the respective

131、 share for CFOs at 50%.Given the large number of high-quality and highly regarded universities in the US,this concentration highlights the considerable status that a degree from one of the top-ranking schools holds.There is a powerful“network effect”among such elite institutions,where access to exte

132、nsive and privileged networks can support and fast-track career progression while fostering high-level professional connections.This time-honored path to the top of US business still holds strong,although other factors will often influence whether candidates reach the very highest echelon.To MBA or

133、not to MBANote:Does not include executive education.MBA stands for Master of Business Administration.Source:BoardEx,an Altrata company,January 2025Proportion of US portfolio company executives that have an MBA degreeCFOCMOCOOCEOCHRO46.7%37.3%34.0%33.2%22.9%Almost half of all portfolio company CFOs h

134、ave an MBA.While by no means common to all,a significant proportion of leadership team executives have obtained an MBA degree,learning critical skills as well as signaling their ambitions along the way.CFOs have the highest proportion of such degrees,but this not so far ahead of the third of CMOs,CO

135、Os and CEOs that also have an MBA.Only CHROs fall below a third at 23%.MBAs are a common feature,particularly among CFOsAltrata|Portfolio Company Talent 2025|23 Todays portfolio company leadership teamsMethodologyThis report was based on analysis from Altratas BoardEx,using its unique and proprietar

136、y Global Leadership Database,which covers board and non-board members,C-suite executives,senior leaders and professional advisers.The database contains more than 2.4 million profiles of public,private and not-for-profit organizations and the 1.8 million people who work for them.For our analysis,we s

137、tudied the individuals who make up the current leadership teams at portfolio companies across five major markets in North America and Europe:the US,Canada,the UK,Germany and France.To ensure we examined the most up-to-date set of portfolio companies,we restricted our criteria to those that had recei

138、ved at least one round of PE investment since 2018.In total,our research encompasses almost 12,000 companies and 55,000 individuals.In addition,we also studied the leadership teams at portfolio companies in the US and UK in the year 2014,using the same criteria of having received at least one round

139、of PE investment in the previous seven years.All BoardEx data is collected from credible,published sources and cannot be edited by users.Our data is powered by a team of skilled analysts,who research,verify and maintain these profiles.Data details include current and historical roles(with start and

140、end dates)for board positions,employment and education.05MethodologyAltrata|Portfolio Company Talent 2025|24 About AltrataAltrata provides the most essential intelligence and insight on business leaders,the global wealthy and well-connected.Leading commercial,philanthropic and educational institutio

141、ns depend on Altrata solutions to meet their growth objectives.Clients partner with Altrata to confidently engage with exceptional individuals and organizations,create meaningful relationships and seize strategic opportunities.Altratas global dataset contains millions of individual profiles on the w

142、ealthy,senior decision makers,board members and C-suite leaders.Altrata offers actionable,accurate and comprehensive data,maintained by a global team of in-house researchers committed to surfacing the right insight at the right time to drive positive business outcomes.Altrata is the definitive leade

143、r in global wealth intelligence,professional relationships mapping and affluent market dynamics.Altrata is a registered trademark of Delinian Limited and its affiliated companies,and is comprised of five industry leading offerings:BoardEx,Boardroom Insiders,RelSci,WealthEngine and Wealth-X.Altrata|Portfolio Company Talent 2025|25 06To obtain further information or to request a demo,please contact us at: