Private equity deal value surged in the first half of 2025. But underneath the headline numbers, the market tells a more nuanced story—one that has clear implications for how PE firms hire and lead at the portfolio company level.
Here’s what we’re seeing in the market and reading in analyses by key research providers, including S&P Global Market Intelligence and PitchBook, and how it should inform your talent strategy as we head into the second half of the year.
Key Market Trends
1. Deal Value Up, Deal Count Down
Global PE deal value rose nearly 19% in H1 2025, even as deal volume declined 6% year over year. There are fewer, but larger, transactions. Sponsors are leaning into control deals and billion-dollar take-private transactions while remaining cautious on volume, particularly in the middle market.
2. Exit Activity Remains Soft
Despite hopes of a rebound, PE exits declined 25% in Q2, according to PitchBook. Lingering tariff and regulatory uncertainty, as well as tight credit markets, continue to delay sponsor monetization efforts.
3. Dry Powder Is Aging
There’s still $2.5 trillion in global PE dry powder -but much of it is growing stale. Bain & Co. estimates nearly a quarter of buyout fund dry powder was raised over four years ago. This puts pressure on both deployment and returns.
4. Valuation Gaps Are Narrowing
Across the market, there are signs of a “thaw.” Sponsors are again testing the market with high-quality assets – but they’re doing so selectively.
What It Means for Talent
These trends show that PE firms need to pay close attention to leadership decisions at the portfolio company level.
1. The Push for Larger, Higher-Stakes Deals Raises the Talent Bar
When firms pursue fewer but larger deals, the margin for error shrinks. Leadership hiring mistakes carry outsized risk. That’s why firms executing high-value transactions are placing a premium on C-suite talent that’s proven, prepared, and ready to move fast post-close. In high-stakes deals, every day without the right leadership is a day of lost momentum.
2. Stalled Exits Highlight the Need for Exit-Ready CFOs
Many firms are discovering that their portfolio companies aren’t ready to go to market, often due to finance leaders who’ve never led a transaction. Exit-ready CFOs don’t just manage numbers – they shape the story, steer diligence, and command buyer confidence.
3. Extended Hold Periods Require Two-Phase Leaders
With average hold periods now nearing seven years, successful value creation often unfolds in two distinct waves: an early post-close phase of execution and a mid-cycle phase requiring new growth strategies and leadership refresh. We help our clients recruit leaders who can thrive in both.
4. Large Funds Are Moving Down-Market – Competition for Talent Is Heating Up
As large funds chase yields in the middle market, competition for executive talent in that tier has intensified. Founders stepping back. New roll-up strategies. Carve-outs from larger entities. All of these scenarios require seasoned, hands-on operators with integration experience, change management skills, and a playbook for scaling the business.
5. Leadership Alignment Is a Critical Risk Factor in Today’s Roll-Up Environment
With add-ons comprising roughly 40% of PE deal activity, leadership misalignment across acquisitions can erode deal value and disrupt the investment thesis. We’ve seen firsthand how proactive recruiting of integration-ready executives can mitigate risk and accelerate value creation.
The Bottom Line
The private equity landscape may be uneven, but deals are getting done. Exits are returning. And GPs are under pressure to put capital to work.
In this environment, operational talent is essential, and leadership decisions carry more weight, particularly when it comes to preparing companies for growth, integration, or sale.
In recent months, we’ve worked with sponsors looking to address leadership gaps earlier in the investment cycle, sharpen readiness at the CFO level, and bring in executives with experience navigating exactly this kind of market.
The goal in those conversations is to ensure companies have the leadership in place to act with speed and confidence when timing matters.
About the Author
Tom Chinonis is a Senior Managing Director at Townsend Search Group and specializes in representing private equity firms with C-suite placement across middle market and lower middle market platforms across the country. Tom works closely with management teams and investment professionals identifying key leadership for multi-national organizations across wide ranging industries, typically with locations that serve both domestic and global markets. Tom began his career as a corporate attorney specializing in mergers and acquisitions at an AmLaw Top 50 law firm, then served as the CEO in multiple start-up organizations before joining Townsend Search Group in 2021.
