Private Equity market update: 'Uncertainty has become the new normal'

Geopolitical tensions, rising interest rates, and cautious investors have been shaping the private equity market for quite some time. Still, standing still is not an option. How are funds navigating this uncertainty, and what does it mean in practice for their hiring strategies? A market update from Anouk Visser, Executive Search Specialist for PE- and VC-backed portfolio companies at Robert Walters.

The market has been turbelent for some time. How do funds currently view the situation?

“I notice that uncertainty has effectively become the norm. Last year, geopolitical developments and economic fluctuations were still relatively new and had a strong impact on the market. Now, you see that funds have become better at navigating these conditions. That doesn’t mean it’s back to business as usual, but the market is clearly managing it more effectively.”

Do you see differences between private equity and venture capital in this regard?

“Yes, there are definitely differences. Within private equity, we’ve seen deal flow decline somewhat over the past year. This is partly due to stricter requirements from investors. Raising new funds has become more challenging, as limited partners are scrutinizing track records and exits more critically. As a result, exits often take longer than anticipated, and valuations may come in lower.

In venture capital, it is primarily smaller funds that are struggling with fundraising. Established funds with a strong track record are less affected. Another important factor is where a fund sits in its lifecycle: funds nearing the end of their term are under greater pressure to deliver results.”

What impact does this uncertainty have on hiring within portfolio companies?

“Uncertainty doesn’t necessarily lead to less hiring, but it does change how hiring is approached. Precisely because of this uncertainty, funds have become more selective in their recruitment decisions. Instead of pursuing growth for growth’s sake, the focus has shifted more towards value creation, cash flow, and performance control. This is directly reflected in the profiles being sought.”

Which profiles are currently most in demand?

“What really stands out to me is the growing demand for professionals with strong data and technology capabilities—candidates who can build dashboards, understand KPIs, and steer the business based on data. I hear this consistently across multiple funds, and not just within finance.

At the same time, the focus on cash flow and performance management remains crucial. Funds are looking for individuals who are hands-on but can also think strategically ahead. That combination has become essential, particularly in roles such as CFO and finance leadership within portfolio companies.”

Is the changing market also affecting international growth strategies?

“Yes. What I’m hearing is that there is a stronger focus on Europe. Expansion into the United States has become more challenging due to geopolitical developments and a shifting investment climate. As a result, funds are increasingly looking at growth opportunities within Europe, which also brings different requirements for leadership and organisational structure.”

What does this market demand from organisations when it comes to C-level hiring?

“Above all, precision. You need to have a very clear understanding of the type of profile required at each stage. This is no longer a market where you can hire broadly and assess fit later. Fortunately, this is where we can provide guidance, for example by asking the right questions.

When recruiting a CEO or CFO, it’s not about speed or volume, but about achieving a highly precise match. The right leader must align with the company’s stage, the dynamics with the fund, and the existing management team. This requires careful conversations and a willingness to look beyond the CV.”

More information

Anouk Visser is happy to provide personal advice on executive search recruitment for C- and D-level professionals within private equity and venture capital. You can schedule a non-binding introductory meeting to discuss your hiring needs or next career step.

Robert Walters is an international executive search firm with a strong presence in cities such as Amsterdam, Rotterdam, and Eindhoven. And specialises in executive search within finance, CEO search, and the placement of senior finance leaders, including CFO roles within PE- and VC-backed companies.