Private Equity Firms Intensify Global Talent Hunt Amid Fundraising Challenges

Private Equity Firms Ramp Up Global Recruitment Amid Fundraising Pressures

After years of constrained dealmaking due to rising interest rates and market volatility, private equity firms are intensifying their global talent acquisition efforts, particularly in fundraising, investor relations, and marketing roles. This surge follows a cautious recovery in deal activity during early 2025, although momentum slowed in the second quarter amid geopolitical and tariff uncertainties.

Deal Activity and Fundraising: A Mixed Outlook

Data from Bain & Company indicates that while buyout transactions increased in Q1 2025, the pace declined significantly by April, with deal value dropping 24% compared to the first quarter’s monthly average. Despite these challenges, private equity firms are proactively investing in fundraising teams to secure capital ahead of expected market improvements.

Sasha Jensen, CEO of Jensen Partners, emphasizes that securing capital remains a permanent necessity for firms, making fundraising talent critical in a market where limited partners have restricted liquidity. Christopher Connors of Johnson Associates notes that firms are willing to pay premium salaries for fundraising professionals due to the substantial revenue they can generate.

Global Expansion and Regional Hiring Trends

The recruitment drive is notably global. Apollo is expanding its presence in Japan and Asia’s wealth management sectors, while Warburg Pincus and Carlyle are also bolstering their teams in Japan, which stands out as a relatively robust market for dealmaking. Southeast Asia and India are witnessing similar hiring momentum, with new offices opening in Singapore and Mumbai.

North America’s hiring has surpassed levels seen in 2022 and 2023, driven by large funds and growth equity firms actively recruiting first-year analysts for 2026. Europe’s private equity sector is also gaining momentum, supported by recent interest rate cuts by the Bank of England, which are expected to stimulate deal activity and fundraising.

Chris Eldridge of Robert Walters highlights a trend of international expansion, with firms from the US, UK, and Asia increasingly targeting cross-regional growth. Recruitment efforts are becoming more proactive, with firms engaging talent well before candidates complete their education.

Competition with Investment Banks Intensifies

A clear divide exists between large multi-strategy firms with the resources to hire aggressively and smaller firms struggling to raise funds and maintain headcount. The competition for junior talent is particularly fierce, as private equity firms continue to recruit from investment banks’ analyst pools.

In response, major banks like Goldman Sachs and JPMorgan have implemented stricter policies to limit early departures of analysts to private equity, including shortened promotion tracks and loyalty pledges. These measures reflect the intense competition for talent and the strategic importance of junior bankers in both sectors.

Carried Interest as a Key Recruitment Advantage

Private equity’s unique compensation structure, especially carried interest—a share in fund profits taxed at capital gains rates—provides a significant financial incentive over traditional investment banking. While junior salaries are comparable, mid-level and senior private equity professionals can earn substantially more through carried interest, sometimes exceeding tens of millions over time, making the sector highly attractive.

Christopher Connors describes carried interest as an economic advantage unique to private markets, crucial for attracting and retaining top talent amid a competitive landscape.