Private equity-backed executives have a strong incentive to stay with their company throughout a 5-7 year hold period: their equity stake. The promise of a lucrative payout at exit draws many executives to PE, and firms expect these leaders to guide them to exit. 

Yet this ideal scenario often does not reflect reality. According to a recent PECXO survey, 80% of executives are likely to change jobs within the next year — and only 33% of those respondents are leaving because the business will have sold by then. An increasing number of executives appear to be considering leaving mid-hold. While 68.4% reported they had not left a role mid-hold before, 61.4% of those same respondents said they did not intend to stay in their current role until their current company has sold.  

You may be asking yourself whether to remain in your current PE-backed role until exit. Consider some of the top reasons executives leave, and the ramifications of doing so, before you make your decision. 

Reason #1: Career advancement

“We are seeing no slowdown in the number of C-suite roles for which we’re being retained. The relentless increase of the number of portfolio companies continues to outpace the supply of experienced executives with private equity backgrounds. For those looking for opportunities, there are no shortage of C-suite roles. Private equity is looking for talent wherever they can find it.”

— Rob Huxtable, Falcon Partner, in a recent

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