July 28, 2009 – According to a new report by global executive search firm Russell Reynolds Associates, the private equity sector continues to seek new talent in spite of the deepening recession and promise of increased government regulation. Its "2009 Leadership Outlook – A Global Perspective for the Private Equity Market" details how the private equity market is actively recruiting new talent to build capabilities in new directions including distressed debt, secondary purchases or sales, and sector-specific activity. According to the report, some middle market firms are seeking to exploit turmoil in the larger PE funds by selectively adding talent, while PE portfolio companies are changing or adding to leadership teams, often at the highest levels. "Boards and PE investors are coming to the conclusion that the strategies and competencies needed to run their businesses in this economy are different from what was needed in the past," noted Abby Adlerman, head of the private equity practice in the Americas at Russell Reynolds. "To the extent that the current leadership has recognized this and has adapted, these companies are well-positioned and will have a critical head start in the competitive environment."