Declining deal flow, rising hiring: the paradox in private equity

Although deal flow has slowed across the Netherlands and Europe, private equity remains highly active. What is driving this remarkable wave of hiring in the PE sector? We spoke with Anouk Visser, executive search specialist for PE- and VC-backed companies.

Deal flow across the Netherlands and Europe has slowed significantly since 2023. Yet we see private equity firms hiring at pace. Why is that?

“There are several reasons for this. First, many funds are preparing for a market rebound. They expect deal activity to pick up again by late 2025 or early 2026 and want to strengthen their teams now to be ready to move quickly. Second, with fewer new deals being closed, the focus has shifted to value creation within existing portfolios. This requires very specific expertise. And finally, fundraising plays a role. Investor relations teams are being expanded because LPs are paying closer attention to track records and the cohesion of those teams.”

Does this apply to all PE firms?

“No, there are clear differences. In the Benelux we see mid-market funds actively hiring, mainly to strengthen their operations and value creation teams. International players with a Dutch office are more selective and focus on strategic roles in ESG, data analytics and portfolio management. Smaller funds, typically under €1 billion, are more cautious and usually only hire when they are actively fundraising.”

Which profiles are most in demand right now

“Hiring is concentrated in three main areas. The first is portfolio operations and value creation. Funds are looking for people who can increase returns through operational improvements. Candidates with a background in strategy consulting in companies like McKinsey, Bain or BCG are popular, as well as those with scale-up management and digital transformation experience.

In addition, I see strong demand for professionals in investor relations, fundraising and ESG. LP networks are being expanded and reporting needs to be more professional, especially with ESG requirements gaining importance.

Finally, data and tech analytics is becoming more critical. Firms are seeking candidates with experience in due diligence, performance monitoring and valuation modeling.”

Investment banking has always been a logical springboard into private equity. Is that still the case?

“Yes, but this is shifting. Investment bankers remain in demand for deal teams, but interest in candidates from consulting and operational roles is growing. Think of CFOs from scale-ups or professionals with business transformation experience. Sector expertise in areas such as healthcare, tech and B2B services is highly valued.”

The private equity seems to gain popularity over investment banking among jobseekers. What makes PE so attractive?

“For many, work-life balance is an important factor. At mid-market funds this is often better, even though the work remains demanding. The long-term impact is another key attraction. In private equity you create real operational value rather than just closing transactions.

Financial incentives also matter. Carried interest and bonus structures can be more lucrative over the long term than traditional banking packages. And then there is the prestige factor. Private equity is seen as exclusive, with small, entrepreneurial teams and a culture that is less hierarchical than in large banks. At first this mainly appealed to younger professionals, but that group is steadily expanding.”

What advice would you give PE firms that are about to start hiring?

“The market for these professionals is highly competitive. Position your fund with the unique mix of dealmaking, strategic advice and impact at portfolio companies. Look beyond the traditional talent pools of consultants and investment bankers. Also, make sure to deliver an excellent candidate experience: a fast, transparent and personal process with direct partner involvement and a clear growth path. That will strengthen your appeal in a market where candidates have plenty of alternatives.”

More information

For tailored advice on hiring C- and D-level professionals in private equity, book a free consultation. If you are considering a career move to a PE firm, Anouk would also be glad to discuss your ambitions. Contact her at Anouk.Visser@RobertWalters.com or +31 20 644 4655. Learn more about our executive search recruitment services at Robert Walters, with dedicated specialists for PE- and VC-backed companies as well as corporates.