Finding Talent That Drives Value Creation
February 6, 2023 – Despite macro-environment challenges of virtually every stripe, and hard-to-miss layoffs at major tech companies, many executive search firms continue to thrive as the new year takes hold. Few, however, can boast the impressive results that Bespoke Partners, which serves private equity backed software companies, has seen. In the last three years, the San Diego, CA-based firm achieved 266 percent revenue growth, with no sign of slowing down.
The firm closed out 2022 with record revenue and won its 1,000th executive search engagement, as demand surged for its C-suite recruiting and leadership advisory services. “Talent is the critical factor in achieving an investment thesis,” said Eric Walczykowski, Bespoke’s chief executive officer. “Our clients know that the right leadership team is essential for timely execution on value creation plans. We’re proud to be their trusted partners in identifying and addressing key leadership needs across their portfolios.”
Bespoke Partners won attention last year when it launched a two-year guarantee on executive placements. Clients using the firm’s FIT Profile leadership assessment service are guaranteed that placements will stay for at least two years, doubling the industry standard. “No other firm has made such an unequivocal commitment to partnering with its clients to cut the risk of hiring the wrong C-suite leader,” said Bespoke.
The two-year guarantee went into effect on Jan. 1. If the placed executive leaves the role or is terminated within 24 months based on the terms and conditions, the search will be redone at no cost to the client.
A Groundbreaking Study
Throughout 2022, Bespoke monitored and analyzed thousands of datapoints related to the trends and economic factors affecting private equity talent. The result was the recently published Private Equity Talent Benchmark Report 2023, which Bespoke describes as the industry’s first analysis shedding light on executive compensation trends, upleveling practices, turnover trends, and related data.
While financial engineering, inorganic growth, and market expansion remain important tools in the private equity toolbox, talent has emerged as key to growing companies and achieving the investment thesis, according to the report. Yet unlike strategic assets, intellectual property, or other resources that fuel growth, talent can be notoriously difficult to optimize. Bespoke Partners’ report is designed to help private equity partners and the leaders in their portfolio companies understand essential talent market trends based on granular data from the sector.
The private equity sector is on the downside of a historic surge in deal volume, according to the Bespoke Partners’ report. “The talent market for private equity portfolio companies has experienced profound impacts from that surge as well as the pandemic-induced disruption that immediately preceded it,” the report said. “As 2022 drew to a close, the Fed’s aggressive interest rate hikes and volatility in company valuations contributed to a sharp curtailing in private equity deal volume began to ease what was the tightest talent market in recent memory. These factors form the backdrop for the trends in the talent market for private equity portfolio firms in the software and SaaS sectors.”
A Year of Achievements
Over the last 12 months, Bespoke Partners has received a strategic investment from AEA Growth to drive further growth and expansion. In addition, the firm began laying the groundwork for its recently announced office in San Francisco, enhancing Bespoke’s nationwide presence with its fourth regional location. “The new office will position us to expand our signature white-glove service for our clients based in the Bay Area,” said Mr. Walczykowski. “Responsiveness and tailored engagement are our hallmarks and we are raising our services to a new level of efficiency for an unmatched client experience.”
The new regional office will enable the search firm to further boost the quality of its tailored executive recruiting and leadership advisory services for private equity backed software and SaaS companies.
Related: Bespoke Partners Appoints Chief People Office
In recent months, Bespoke has grown to nearly 100 employees and rounded out its executive team with a new chief financial officer, chief people officer, and chief marketing officer. The firm also aligned its services into focused functional role practices, including CEO, CFO, go-to-market, talent leaders and technology leaders.
Demand for Top Talent in the Private Equity Sector Continues
While financial engineering, inorganic growth, and market expansion remain important tools in the private equity toolbox, talent has emerged as key to growing companies and achieving the investment thesis, according to a newly released report from Bespoke Partners. Yet unlike strategic assets, intellectual property, or other resources that fuel growth, talent can be notoriously difficult to optimize. Bespoke Partners’ report is designed to help private equity partners and the leaders in their portfolio companies understand essential talent market trends based on granular data from the sector.
The private equity sector is on the downside of a historic surge in deal volume, according to the Bespoke Partners’ report. “The talent market for private equity portfolio companies has experienced profound impacts from that surge as well as the pandemic-induced disruption that immediately preceded it,” the report said. “As 2022 drew to a close, the Fed’s aggressive interest rate hikes and volatility in company valuations contributed to a sharp curtailing in private equity deal volume began to ease what was the tightest talent market in recent memory. These factors form the backdrop for the trends in the talent market for private equity portfolio firms in the software and SaaS sectors.”
To read Bespoke Partners’ full Private Equity Talent Benchmark report please click here!
In December, Bespoke announced founding partner Kristie Nova would return to lead the firm’s dedicated practice placing high-impact chief executive officers in private equity portfolio companies.
Serving the PE Sector
Bespoke Partners is an executive search and leadership advisory firm dedicated to partnering with top private equity firms, including Francisco Partners, Clearlake Capital, WCAS, Insight Partners, GI Partners, General Atlantic, CVC Capital Partners, and TA Associates, among many others, to recruit software talent and assess and evaluate teams at every stage of the investment lifecycle, from growth equity to buyout.
The search firm’s expertise includes all C-level searches across multiple functional domains, including financial officers, HR and people, marketing and technology, as well as board of directors and internal private equity operating partner searches. The firm’s expanding leadership advisory platform includes organizational due diligence as well as executive assessment and coaching. Bespoke Partners also operates regional offices in Austin, TX, and Philadelphia.
Related: Bespoke Partners Adds CEO of Sales Benchmark Index as Board Member
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media
