CEOs who are at the top of their game may be ready to take the next step and score a lucrative equity package in return for successfully navigating a private equity-backed portfolio company through the sprint to exit. But how can you land your first private equity-backed position while competing against a handful of been-there-done-that CEOs? The answer is your resume. At least that’s where it starts.
Early Career Roles Lay the Groundwork
Private equity sponsors often look to a candidate’s first few roles when building an initial impression of a resume. They will take into account both the titles someone held and, just as importantly, the companies that hired them.
Private equity-backed CEO candidates who have blue-chip experience early in their careers often land on the shortlist when being considered for a position. There are several reasons why this is the case. For starters, the majority of private equity decision-makers on both the investing and operating side grew up in blue-chip companies themselves. An Operating Partner who started their career with a large company is more likely to take a chance on a first-time CEO who came up in a similar environment.
This may seem arbitrary, but the blue-chip experience does truly have its merits. Large and successful companies often have rigorous and fast-paced training programs that ultimately prepare executives for the pressure and speed of private equity. Furthermore, larger companies expose up-and-coming executives to best practices in their industry. For example, a would-be manufacturing CEO who learned how the most successful companies operate their manufacturing plants will be more attractive in the eyes of the PE firm than someone who lacks this insight.
A blue-chip foundation is not the be-all and end-all of the hiring process, however. In fact, sometimes a private equity sponsor wants a candidate who started their career in smal...