Private Equity News Article

Venture Capital and Private Equity groups would rarely admit to being "awash" with cash, but the competition for capturing the attention of people and businesses with the appropriate balance of market potential, management credibility and the financial need for capital is intense.

There is still a strong market in Venture Capital and Private Equity firms for senior candidates with a successful track record of business turnaround, expansion and a core understanding of specific marketplaces. The Management Buy In, Management Buy Out brokered through these firms is very much alive, however the onus of finding the "deal" is now much more reliant on the right candidate coming to them with the right proposition, rather than as was, when they would more likely "parachute" in the talent from their network or through a Search Firm scouring the competition.

The quality of the management team of a business is the key criteria that a Venture Capitalist or Private Equity organisation looks for when deciding to back a venture.

There is still a place for turnaround Managing Directors and Chief Executive Officers, and their implantation and input can sometimes be the very strategy of the financial backer. The mindset of the more corporate Executive does not always translate to the more entrepreneurial Venture Capital and Private Equity worlds.

Key to the success of such ventures is the absolute integration of that Executive into the business. Rewards can be great but they are earned rather than bestowed by right. An Executive negotiating their total remuneration should expect the exit strategy incentive to be the driver. Big corporate salaries and financial safety nets and guarantees are not the realm of the Venture Capital and Private Equity executive, but more the mutual dependency of the backer, the business and the executive on the absolute success of the venture.

If you are seeking a career move into a Private Equity owned business or you have a requirement for someone to join your business please contact us on 0207 959 3400 or via email at privateequity@burnscarlton.com