Private Equity Firms Intensify Global Talent Hunt Amid Fundraising Challenges

Private Equity Firms Ramp Up Global Hiring Amid Fundraising Pressures

In the first half of 2025, private equity firms significantly increased recruitment efforts, focusing on fundraising, investor relations, and marketing roles, according to a report by Magellan Advisory Partners. This uptick follows a prolonged period of subdued dealmaking driven by rising interest rates and market volatility, which led to postponed exits and a buildup of unsold portfolio companies.

Uneven Deal Activity Stalls Momentum

Buyout activity showed tentative recovery in early 2025 but lost steam in the second quarter amid tariff uncertainties and investor caution. Bain & Company reported a 24% decline in global buyout deal value in April compared to the first quarter’s monthly average, alongside a 22% drop in deal count. Despite these headwinds, private equity firms are proactively investing in talent to prepare for future capital raising opportunities.

Fundraising Talent Central to Navigating Capital Constraints

Sasha Jensen, CEO of Jensen Partners, emphasized that securing capital remains a permanent necessity, even as deal flow fluctuates. With limited partner (LP) liquidity tight, firms are prioritizing fundraising teams and are willing to offer premium compensation to attract top talent. Independent consultant Christopher Connors noted that while these hires represent a significant expense, their potential to generate revenue justifies the investment.

Global Expansion Drives Talent Demand

Private equity giants such as Apollo, Warburg Pincus, and Carlyle are expanding their presence in Asia, particularly in Japan, which stands out as a relatively robust market for dealmaking. Southeast Asia and India are also experiencing increased hiring activity, with new offices opening in Singapore and Mumbai. In North America, hiring levels have surpassed those of mid-2022 and 2023, with many firms recruiting first-year analysts for 2026 start dates.

Europe’s private equity sector is benefiting from macroeconomic shifts, including rate cuts by the Bank of England, which are expected to stimulate deal activity and fundraising. Chris Eldridge, CEO of Robert Walters for North America, Ireland, and the U.K., highlighted that international expansion is a common strategy, with firms targeting multiple regions sequentially.

Talent Competition Intensifies Between Private Equity and Investment Banks

The hiring surge has heightened competition for junior talent, traditionally sourced from investment banking analyst pools. In response, banks like Goldman Sachs and JPMorgan have implemented stricter anti-poaching measures in mid-2025, including restrictions on accepting private equity offers before completing 18 months and loyalty pledges.

To counteract tighter bank policies, private equity firms are developing in-house training programs to cultivate talent internally. Jensen Partners’ Jensen indicated that these dynamics suggest an increasingly competitive recruitment environment, with firms securing candidates well before graduation.

Carried Interest as a Competitive Advantage

Carried interest—profit shares from fund performance taxed at capital gains rates—remains a compelling draw for private equity professionals. While junior-level pay is comparable to investment banking, mid-level and senior roles in private equity offer substantially higher long-term earnings potential. Connors explained that this unique compensation structure is a significant factor attracting and retaining talent in private markets.