Private equity firms will increasingly look to hire senior managers from the companies they invest in as the demand for professionals in the sector grows, according to an executive recruitment specialist.
"With big pockets of money chasing private equity deals there will be an increasing demand for private equity professionals. These firms will start to look at hiring senior people from their investee companies," Johnson Executive Search principal Lynn Muirhead said.
It was a trend already happening in Europe, Muirhead said.
"Traditionally there has been very little movement of senior individuals between private equity firms because of the carry schemes in place," she said.
Carry schemes are bonus-like structures linked to the number and value of deals generated by a manager in a private equity fund.
Muirhead said investment bankers and fund managers traditionally went into private equity businesses, however, private equity firms were now taking an interest in having people with industry expertise in steering the management of the businesses they invested in.
