Looking ahead to 2023, let's examine the hiring trends in private equity.
In light of the macroeconomic turbulence and headwinds, this post examines the state of the Private Equity hiring market in 2023, presenting findings from the latest Pitchbook and Preqin research.
Retention has been a major challenge for the industry in recent years, with the average tenure for a private equity investor decreasing from 5.5 years in 2015 to 4.3 years in 2023, and 36% of firms experiencing at least one member leaving in the past year.
Preqin's latest report suggests that growth equity and value-added strategies will see the most hiring activity in 2023. 46% of respondents expect growth equity firms to hire in the next 12 months, while 40% expect value-added firms to do so. Growth equity has been one of the most active areas of private equity hiring in the past five years, with an average of 37% of firms adding staff each year.
The report also suggests that fundraising will be the primary driver of hiring in 2023, with 47% of respondents believing so. In addition, the report finds that data analysis skills will be in high demand over the next five years, with 55% of respondents believing that technology will significantly impact private equity.
Environmental, Social and Governance (ESG) investing is another trend that is expected to impact private equity hiring in 2023. 78% of private equity professionals believe that ESG considerations will be extremely or very important to the industry over the next five years, and firms are likely to increase their focus on recruiting professionals with experience in ESG investing.
Overall, the private equity market is expected to undergo significant changes in the next five years, with data, technology, and ESG investing playing an increasingly important role in the industry.
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