Deal flow is down. Why is private equity hiring still strong?

Published date: 6 February 2026

Private equity deal activity across Europe, including Switzerland, has slowed significantly since 2023. Transaction volumes and exits remain well below the 2021 peak, with IPO markets largely closed and sponsor-to-sponsor activity more selective. Despite this slowdown, hiring across PE-backed portfolios has remained resilient.

“People often assume that fewer deals automatically mean fewer hires,” says William Andreae-Jones, senior executive search specialist at Robert Walters. “But in reality, portfolio dynamics are driving demand for experienced leadership, not an expectation of a near-term rebound in deal activity.”

Longer holding periods, greater focus on execution

Holding periods have lengthened, leverage contributes less to returns, and value-creation plans are being extended or revised. PE firms are spending more time improving the performance of existing assets, increasing the need for operating and senior leadership talent.

Higher financing costs and more conservative underwriting have reduced the impact of leverage and multiple expansion. Performance now depends primarily on EBITDA growth, cash generation, and operational resilience.

“This is shifting hiring away from deal teams and towards operating partners, portfolio leaders, and senior functional executives who have a proven record of delivering change under PE ownership,” Andreae-Jones explains. “Expertise in pricing, cost control, working capital, and governance is particularly sought after.”

Swiss and Romandie dynamics raise the bar

The trend is most visible in Switzerland’s mid-market, where portfolios are often concentrated in industrials, healthcare, B2B services and consumer SMEs. In these sectors, operational improvement offers greater upsides than financial structuring.

In French-speaking Switzerland, the executive talent pool with prior private equity experience is limited, bilingual French English capability is often required, and Swiss labour law increases the cost of management missteps.

“These constraints make execution risk more acute and mis-hires harder to correct”, William notes.

Implications for executive search

As private equity funds embed operating capability earlier across their portfolios, executive search is becoming a strategic decision rather than a transactional one. In a narrow, relationship-driven market, access alone is no longer enough; judgement and credibility with both sponsors and management teams matter.

William adds: “The most effective searches combine deep networks with an understanding of sponsor governance and operational priorities. It’s about finding leaders who can drive real value within existing portfolios, not just filling roles.”

A structural shift, not a contradiction

Hiring has held up because private equity has entered an execution-led phase. With exits delayed and leverage constrained, operating capability has become central to protecting and generating returns. "This isn’t a contradiction”, Andreae-Jones concludes. “It’s a structural shift in how PE firms create and safeguard value”.