CEO Perspectives: What It Takes to Drive Talent-Fueled Value Creation in Private Equity Today

The CEO role is the piston and the linchpin of a company — developing and driving company strategy, overseeing all aspects of operations, focusing on growth while maintaining company culture. It’s a role that is undoubtedly vital in good times, and even more important during rough or uncertain markets.

In private equity (PE), CEOs can have the additional responsibility of working with investors, keeping the board up to date on progress and performance, and ensuring the company is staying on top of value creation plans.

It was this topic of what makes a strong PE-CEO relationship that was the core theme of a recent panel I moderated on the future of talent and driving value creation in PE at the Private Equity International Operating Partners Human Capital Forum in New York City. My panelists and I unpacked the evolving nature of that important relationship and explored how talent strategy plays a critical role in unlocking value post-close.

The conversation surfaced real-world examples of how to build trust, align leadership, and support CEOs — especially in founder transitions and fast-scaling environments. Below are my three key takeaways from the conversation.

Trust and Clarity Set the Tone for the CEO-PE Relationship

The success of a CEO-PE partnership hinges on establishing trust early and ensuring clarity of roles. Whether stepping into a founder-led business or joining a seasoned management team, CEOs face the challenge of assessing and often reshaping leadership dynamics on day 1.  That means navigating tough conversations about team structure, surfacing capability gaps, and building credibility with both the sponsor and the broader organization.

For investors, this early-stage collaboration is critical. Supporting CEOs through leadership assessments — both formal and informal — helps establish a shared understanding of where strengths lie and where reinforcement is needed. The CEOs on the panel emphasized the importance of PE owners spending time with leadership teams and beyond structured assessments to get a true sense of how people lead and how they work. Clarity and authenticity in these early interactions can set the tone for a collaborative and high-trust relationship going forward.

Talent Discussions Shouldn’t Wait for the Boardroom

While board meetings provide the opportunity for important checkpoints, the most effective talent strategies are built through ongoing, real-time conversations. The panelists shared that regular dialogue with the PE partners about talent is a major contributor to execution speed and alignment. That might look like weekly check-ins, informal calls, or collaborative planning sessions as issues arise.

The cadence of these conversations varies. Some PE firms prefer structured tools like a 9-box talent grid for board meetings while others engage more continuously. Regardless of approach, the consensus was clear: waiting for quarterly or annual discussions risks missing critical inflection points. In today’s environment, talent decisions — from hiring to retention to success planning — must move as fast as business does. Making talent part of the real-time operational agenda gives CEOs the confidence and support they need to move fast and make the right calls.

Human Capital Strategy Should Evolve with the Growth Stage

As companies scale, leadership demands shift quickly. One of the most common missteps post-close is failing to anticipate how fast capability needs will evolve. The CEOs noted that aligning hiring plans with the investment thesis isn’t just about filling roles, it’s also about pacing. Hiring too fast can create a bloat or misalignment, while hiring too slow can stall progress.

One CEO noted that while everyone agreed on the investor thesis, the real challenge was aligning the “transaction thesis” — translating value creation goals into people moves, organization structure, and hiring strategy.

Investors and operating partners play a key role in helping CEOs translate strategic goals into human capital moves. That includes identifying capability gaps tied to future growth stages, thinking through organizational design as functions mature, and bringing objectivity to conversations that can otherwise feel personal or political. Talent planning in this context isn’t just about reacting to issues, it’s about building the leadership that supports the next phase of value creation.

The Bottom Line

As talent continues to play a central role in value creation, PE firms and their operating partners have an opportunity to deepen CEO partnerships by embedding leadership alignment into every phase of the investment. Our main takeaway: Don’t treat talent strategy as a one-time conversation; treat it as an ongoing collaboration grounded in trust, clarity, and a shared commitment to execution.

The operating partner’s role as a strategic thought partner was echoed throughout the conversation. CEOs rely on operating partners not just to execute, but to help navigate the gray areas of team dynamics, founder relationships, and scaling talent decisions under pressure.