After a slow 2024, private equity activity surged in Q1 2025, according to EY’s latest Private Equity Pulse report. Deal volume rose 45% from Q1 a year ago, and total deal value more than doubled. PE firms are eager to put capital to work, but they’re navigating trade tensions, financing complexity, and broader market uncertainty.
As a result, we’re seeing shifts in how firms think about opportunity—and the kind of leadership it takes to deliver results in today’s environment.
Here are five takeaways from the report and what they mean for hiring and talent strategy.
1. Deals Are Coming Back—but With More Caution
The increase in deal volume and value is real, but the environment still feels tentative. Nearly three-quarters of general partners say tariffs could slow investment activity in the coming months, and many firms are struggling to raise capital as credit markets remain tight.
What this means for hiring: Buyers are moving more carefully. That means leadership teams need to be sharp, decisive, and ready to act when deals close. There’s a premium on CFOs and COOs who can manage risk, control costs, and quickly turn strategy into execution—especially in the early stages of ownership when speed and clarity matter most.
2. Sector Shifts Are Creating New Talent Needs
Geopolitical realignment is reshaping where capital is going. Aerospace and Defense are attracting new attention due to increased global spending. U.S.-based manufacturing is regaining appeal—particularly companies with limited exposure to international supply chains. Distressed deals and take-privates are also gaining momentum as volatility creates pricing dislocations.
What this means for hiring: Firms entering new or complex sectors need experienced leaders with deep regulatory knowledge and operational experience in high-stakes industries. Leaders who understand the playbook for distressed turnarounds or public-to-private transitions also bring added value.
3. Strategic Buyers Are Driving Exits Again
In a notable shift, corporate buyers accounted for 82% of PE exit value in Q1—up from 59% a year ago. After years of sponsor-to-sponsor activity dominating the market, strategic acquirers are back in the market, looking for growth through acquisition.
What this means for hiring: Preparing for a sale to a strategic buyer requires a different approach. CEOs and CFOs need to position the company for integration, and those with experience on both sides of M&A deals—buy-side and sell-side—are particularly well positioned to lead through this transition.
4. Operations Leaders Are Taking Center Stage
Nearly 9 out of 10 PE firms say they’re actively helping their portfolio companies address supply chain vulnerabilities, reassess manufacturing footprints, and optimize operations. That’s a major shift in focus, driven by both risk and opportunity.
What this means for hiring: Boards and investors want more from their operations teams. The job is no longer just about keeping things running—it’s about solving problems and driving value. Whether it’s pricing, sourcing, or cost control, operational acumen is a key differentiator.
5. These Trends Extend Beyond PE-Owned Companies
These trends extend far beyond PE-owned companies. Many are being evaluated as acquisition targets or are competing with PE-backed businesses in increasingly aggressive markets.
What this means for hiring: Leadership expectations are rising across the board. Whether your company is preparing for a transaction, considering outside capital, or simply trying to stay competitive, you need executives who can think strategically, manage uncertainty, and deliver results under pressure.
Final Thought
Private equity dealmaking appears to be rebounding—but not with a return to business as usual. Firms are more focused, more selective, and more hands-on. And they’re looking for leaders who can match that energy.
The quality of your leadership team is more important than ever in this dynamic environment. If you’re thinking about how your organization is positioned for what’s next, Townsend Search Group can help develop a strategic roadmap for your organization’s specific hiring needs.
About the Author
Tom Chinonis is a 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.
