Growth and M&A Activity to Surge Across Recruitment Sector In 2025
March 21, 2025 – Hunt Scanlon Media has released its annual rankings of leading executive search firms, giving the sector its first official performance review on last year’s activity. In the U.S. and globally, billions of dollars poured into the high-end recruitment sector in 2024, despite an economically challenging year.
“The recruiting sector found stability and recovery in 2024 even as economic headwinds persisted right up through to the election,” said Evan Berta, chief market analyst at Hunt Scanlon. “Growth rates topped out at six percent, and the stage has been set for a strong run ahead.”
Fee revenue at the 50 largest executive search firms in the U.S./ Americas – the industry’s largest region – reached $6.041 billion, according to Hunt Scanlon. More than half (59 percent) of search firms reported positive growth, while 20 firms reported double digit gains. Russell Reynolds Associates grew by 10.8 percent in the Americas – the strongest growth rate among the Top 5 SHREK firms – catapulting it to the No. 3 spot on the Top 50 roster. Globally, the firm ranks No. 2.
According to Hunt Scanlon, search firms are finding growth by leveraging acquisitions, expanding service offerings, and integrating AI-powered recruiting tools to enhance their capabilities and gain a competitive edge. “Last year also saw a notable increase in demand for interim executive hiring and leadership assessment and consulting services as organizations sought more agile and flexible talent solutions to address evolving workforce needs,” said Scott A. Scanlon, the co-founder and CEO of Hunt Scanlon Media who also oversees the firm’s burgeoning M&A advisory group.
Market consolidation played a major role in fueling revenue growth at some search firms, a trend that has picked up steam since 2020. With a majority of search firms actively considering M&A opportunities, the industry has been experiencing a wave of mergers, acquisitions, and strategic partnerships, said Mr. Scanlon. “This has enabled search firms to scale niche verticals more rapidly and expand into new geographies, industries, and service lines,” he noted. “As recruiting leaders navigate shifting market dynamics, acquisitions have emerged as the most effective lever for growth,” he added.
A New Playbook
“Recruiting specialists doubling down on securing talent in private equity, technology, healthcare, and financial services showed the biggest gains in growth,” said Mr. Berta.
The private equity sector continues to dominate talent mandates for recruiters and is now the leading growth vertical for executive search firms, he noted. “PE is on the hunt for top-tier talent to manage deal flow, optimize portfolio performance, and scale businesses in a competitive environment,” said Mr. Berta. “It is a sector that underpins every industry, and it needs top flight talent in droves.”
The technology sector is another growth engine, said Mr. Berta, “with companies racing to hire leaders who can drive digital transformation, AI integration, and cybersecurity advancements.”
Healthcare & life sciences also continues to expand, he noted, “fueled by innovation in biotech, pharmaceuticals, and healthcare delivery, requiring specialized leadership to navigate regulatory challenges and scientific breakthroughs.”
Financial services is also a perennial leader in advancing mandates to search firms. “As companies adjust to economic shifts, evolving regulations, and the increasing demand for specialized financial talent, requests for skill-specific leadership and their direct reports has been rising accordingly,” said Mr. Berta.
NU Advisory Partners earned the distinction as the fastest growing search firm in 2024, rising 108 percent. It is a spin-out of Russell Reynolds Associates. “NU Advisory has carved out a niche in high-growth and innovation-driven industries,” said Mr. Berta. “Their focus on serving PE-backed clients has fueled its rapid expansion as investors seek proven leadership to drive value creation.”
CEO and co-founder Nada Usina said that she and her expanding team have been focused on creating a better playbook for recruiting. “We are laser focused on using tech, data an AI – whether we’re building, buying, or modifying. We are making search smarter, faster, and built for how businesses move in 2025,” said Ms. Usina. Operationalizing this approach with a top-tier team, she noted, “is proving to make all the difference.”
Growth Drivers
Matt Hamlin, a managing director with PierceGray – a leading boutique placing C-suite and functional leaders across private equity and the Fortune 500 – said growth last year was driven by three primary factors: continued client expansion, particularly in working with new PE firms for the first time; flexibility across functions – P&L leadership and finance were clear growth enablers in addition to the firm’s core supply chain and operations disciplines; and renewed energy from long-hold portfolio companies that have shifted to a continuation focus and a need for upgraded functional leaders aligned with strategy shifts.
“While the first half of the year was more focused on cost-out and operational efficiency in most of the portfolio environments we serve,” he noted, “the back half of the year saw increased volumes in revenue-focused roles, as well as operating partner / advisor roles as our fund-level PE clients prepared themselves for increased deal activity in 2025 and beyond.”
Landing Point, a newcomer to the Hunt Scanlon Top 50 roster, dominated financial services search in 2024. The firm enjoyed 43 percent revenue growth, lifting it to No. 25 on the Hunt Scanlon list. It specializes in finding high-impact accounting and finance, capital formation and investment talent for hedge funds, private equity, and venture capital clients. The firm’s relationship-driven model and investment in AI-powered recruiting tools has largely propelled its success, said co-founder Andrew Boccio.
Related: Creating a Winning M&A Leadership Team
“We’ve built a business that thrives on long-term relationships, ensuring the highest-quality placements for our clients,” he noted. “Our proprietary resume generator alone has saved us nearly 200 hours in the past six months, allowing our recruiters to focus on delivering top-tier talent solutions.” AI tools, he said, “allow us to maximize our recruiters’ time so they can focus on what they do best – building long-term client relationships and identifying exceptional talent.” With hiring demand in financial services expected to remain strong in 2025, Landing Point, he said, is well-positioned for continued expansion.
As part of its forward looking growth initiatives, Landing Point just launched Founder Services, a new division dedicated to guiding early-stage founders in strategic talent acquisition. “The leap from securing Series A funding to assembling the right team is where many startups stumble,” said Mr. Boccio. J. Patrick Gorman is leading the new business, after spending 20-plus years advising high-growth companies like Nubank, PayPal, and Uber on strategic hiring.
The Bridger Group’s 18.8 percent revenue growth in 2024 marked a major milestone for CEO Jordan Underwood, earning the firm its first-ever spot in the Hunt Scanlon Top 50 rankings. This achievement reflects the firm’s rising influence in financial services and industrial executive search, two growth sectors in need of high-impact leadership talent.
Forces Shaping the 2025 Dealmaking Boom
The latest EY Merger Monthly forecasts an uptick in U.S. M&A activity, driven by favorable macroeconomic conditions, regulatory shifts, and an increasing appetite for strategic deals. “U.S. M&A activity is expected to build further momentum in 2025,” the report notes, “driven by falling interest rates, strong economic expansion, substantial uninvested capital, and the imperative for business transformation.” Despite concerns over regulatory scrutiny, EY predicts that dealmakers will benefit from a clearer policy environment. “With dealmakers having better clarity around the monetary and regulatory dynamics, there has been a significant rise in CEOs’ appetite to engage in M&A,” EY analysts concluded.
“We’ve tripled in size since 2020 by implementing a team-based recruiting model that emphasizes specialization and deep market penetration,” said Mr. Underwood. “Beyond sales roles, we’re now placing operations, engineering, design, marketing, manufacturing, and finance professionals, offering our clients a comprehensive approach to talent acquisition.”
Private equity continues to be one of the most dominant sectors for executive recruiters, with PE firms aggressively pursuing leadership talent to optimize investment performance. ECA Partners, a specialist in the field, grew 38 percent last year, reinforcing its position as a leading boutique in private equity recruiting. As PE firms and financial institutions seek top-tier talent to drive investment strategies and portfolio company performance, ECA has positioned itself as a go-to partner for sourcing finance, strategy and operations leaders across healthcare, business services, industrials & manufacturing, consumer & retail, and technology.
“As deal-making activity rebounds, the demand for strong finance and sales leadership is intensifying,” said Ken Kanara, ECA Partners CEO. “Our ability to connect PE firms with executives who can optimize portfolio performance has been a key driver of our success. With valuations stabilizing and firms holding assets longer than anticipated, top-tier leadership has never been more essential.”
Pivot to Acquisitions
Hunt Scanlon forecasts the recruiting sector to grow by double digits in 2025, with demand for talent expected to surge in the second half of the year. “We see strong tailwinds for executive recruiting through 2030,” said Mr. Scanlon. “The supply of top drawer leaders is tightening,” he added. “That will translate into a big year ahead for recruiters,” he noted.
Related: Creating a Winning M&A Leadership Team
“With an improving environment, search firm founders and their management teams will lean more heavily on strategic growth partners to fund and scale their operations,” said Mr. Scanlon. “The good news is that PE firms and strategic acquirers continue making major bets on investing in this space,” he said.
Robust M&A Deal Pipeline
According to a private Hunt Scanlon poll taken two weeks ago, 58 percent of founders expressed interest in considering a potential sale of their business. “That robust pipeline is fueling the recent rise in M&A deal making activity,” said Mr. Scanlon, “and setting the stage for heavy consolidation ahead.”
One Top 10 global talent advisory firm that has taken a disciplined approach to M&A is ZRG Partners. “Our growth in 2024 was driven by a combination of strategic organic expansion and targeted acquisitions,” said CEO Larry Hartmann, “both of which contributed to revenue acceleration across the platform.”
On the organic side, he said, “we continued to invest in top-tier talent, bringing in experienced professionals across multiple industry verticals to deepen our expertise and better serve our clients.”
At the same time, he noted, “we executed a series of highly strategic acquisitions that were not just about adding scale but about creating true synergy – integrating firms that complemented our existing strengths and expanding our capabilities in meaningful ways.” By acquiring firms that aligned with ZRG’s sector expertise, client needs, and geographic reach, he said, his team was better positioned to cross-leverage opportunities, drive efficiency, and enhance the firm’s service offerings.
“This approach – balancing disciplined organic growth with thoughtful acquisitions – has been a key factor in maintaining our trajectory as one of the fastest-growing talent advisory firms in the industry,” he said.
Bullish Outlook for 2025
Despite the ongoing economic uncertainties of the last two months, executive search leaders remain poised for growth and have an unwavering tailwind of confidence at their back. A full 93 percent of search firm leaders polled said they expect revenue growth this year, anticipating a 16 percent average increase on the year. Eighty-four percent plan to expand their recruiter headcounts in 2025.
Private equity, technology, healthcare, and financial services will likely remain the most active hiring markets, with executive search firms increasingly expanding service offerings, leveraging AI-driven talent solutions, and embracing M&A strategies to solidify their market positions.
“While some industries remain cautious about hiring, the demand for high-impact leadership remains stronger than ever,” said Mr. Berta. “Companies understand that having the right leadership in place is crucial to maintaining stability and driving growth.” By 2030, he said, a different industry will be emerging, focused on AI-enabled talent mapping and AI-driven predictive analytics and assessment. Automation tools to streamline hiring at all levels – from entry level up into the C-suite – is just two or three years away now,” he said.
Acquisitions are reshaping the executive search industry, fueling record-breaking revenue and sector consolidation. With firms positioning for long-term success through M&A and expanded talent solutions, the executive search market remains fiercely competitive. As firms look ahead, growth, strategic expansion, and talent innovation will define the next phase of industry evolution.
Related: How Search Firms are Winning Through M&A and Unlocking Value
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
