WHY PRIVATE EQUITY IS TURNING AWAY FROM THE BIG EXECUTIVE SEARCH FIRMS

Private Equity firms have traditionally relied on large executive search firms, commonly referred to as the “SHREK firms,” which include Spencer Stuart, Heidrick & Struggles, Russell Reynolds, Egon Zhender, and Korn Ferry. However, in recent years, more and more Private Equity firms are turning away from these big players and looking for alternative solutions to their executive search needs.

The reasons for this shift are numerous. First and foremost, many Private Equity firms have been dissatisfied with the delivery of the search assignments by these big firms. The SHREK firms have been known to take large up-front payments, yet the assignments can take 6 to 12 months to see candidates, with little to no updates delivered on progress. This lack of transparency has left many Private Equity firms feeling frustrated and dissatisfied with the service provided.

Another significant reason for this shift is the neglect of the lower middle market Private Equity firms. The large-cap firms like Warburg Pincus and The Carlyle Group receive the bulk of the attention from the SHREK firms, leaving smaller firms struggling to find suitable candidates for their executive positions

As a result of these issues, more and more Private Equity firms are turning to companies like Raw Selection to complete their executive search assignments. Raw Selection has a unique offering of a small upfront deposit and a money-back guarantee on that. If clients are not satisfied with the service provided, Raw Selection will refund the upfront capital in full. This level of transparency and accountability is highly valued by Private Equity firms, which have been burned by the lack of transparency from larger firms in the past.

Raw Selection also has an enviable track record of delivering on search assignments and working with Private Equity firms such as Blackford Capital, MiddleGround Capital, Ventoux Industrial Holdings, Drum Capital, and many lower to middle-market firms. This experience and success rate have made Raw Selection a go-to choice for Private Equity firms looking to fill their executive positions.

In conclusion, it is clear that the traditional approach of relying on the SHREK firms for executive search needs is no longer sufficient for many Private Equity firms. The shift towards alternative solutions like Raw Selection is a testament to the need for greater transparency, accountability, and success rates in the executive search industry. If you are a Private Equity firm looking for executive search solutions, we urge you to reach out to Raw Selection’s Managing Partner, Alex Rawlings, at?[email protected]?to discuss your requirements and how they can help.