Unlocking the Potential of First-Time C-Suite Talent in Private Equity

The private equity talent landscape is undergoing a fundamental shift: With seasoned executives in shorter supply, firms are increasingly betting on first-time C-suite candidates to fill critical roles – and discovering that these newcomers bring a distinctive edge.  

We first unpacked this trend in our recent blog, “Reassessing Risk: The Compelling Case for First-Time C-Suite Appointments,” where we shared placement data that challenges conventional wisdom: in certain industries, first-time executives are not just stepping up, but outperforming their veteran counterparts.  

So how can organizations successfully tap into this new talent pool? It starts with recognizing that first-time executives thrive under fundamentally different conditions than seasoned leaders. To understand what development and support systems work, we teamed up with Summit Leadership Partners – a consulting firm specializing in leadership development – to analyze first-timer success patterns.  

Here we share the most common pitfalls that derail first-time leaders and the proven strategies that set them up for success in a PE environment. 

Identifying Strong “Step-up” Candidates 

In our recent blog, we highlighted the heightened motivation, coachability, and deep industry expertise that first-time executives frequently bring to the table.  

“First-time executives have more at stake,” JM Search Partner Alissa Moody emphasizes. “They need the win to establish their credentials, while seasoned executives can more easily walk away if things don’t align with their expectations.”  

This intrinsic drive to succeed creates a powerful dynamic: First-timers bring genuine openness to feedback and partnership that’s sometimes missing in more seasoned leaders. The challenge for PE firms isn’t finding motivated candidates but learning how to effectively channel that motivation into measurable results. 

Building on this, Summit Leadership analyzed first-time CEOs and CFOs in PE-backed companies and identified three additional Success Attributes that most often predict whether these executives will still be in their roles after one year:  

1. Change agility: The top predictor of retention. First-timers who effectively lead through rapid transformation and ambiguity are most likely to succeed. 
2. Talent magnetism: First-time CEOs and CFOs who excel at attracting and developing talent are 14% more likely to remain in their role after one year. Building a strong bench is critical to survival.  
3. Relationship savviness: Similarly, those who foster strong partnerships and alliances across their PE firms are 16% more likely to stay past year one. For step-up candidates, connection drives retention. 

These attributes are critical, but they’re not enough on their own. Candidates still need the fundamentals: strategic vision and commercial acumen.  

Navigating the Challenges of PE-Backed Leadership 

As we noted in our first blog, step-up leaders often excel in lower and middle market organizations. But the transition is tough regardless of company size – and PE firms expect immediate results.  

5 Pitfalls that Derail First-Time Executives 

Summit Leadership Managing Director Kelly Reed, PhD, identified five common missteps first-time executives in PE-backed companies make: 

1. Misalignment with PE firm expectations beyond financial reporting  
2. Decision-making extremes – either overreliance on the PE firm for decision-making or resistance to input and guidance.  
3. Transparency gaps that erode trust with key stakeholders  
4. Difficulty gaining organizational buy-in from peers, direct reports, and the broader team 
5. Perfectionism paralysis that causes leaders to miss opportunities for quick wins in the critical early days 

These challenges intensify when combined with the enthusiasm that often accompanies a first C-suite appointment. Step-up candidates may get overly excited about a role and skip tough questions during the interview process.  

“A step-up candidate might not grasp the depth of due diligence needed on a PE sponsor to ensure they are a mutual fit,” JM Search’s Moody explains. “We help them ask the right questions and understand the PE firm’s management style, pace, and how we’ve seen other CEOs perform with them. We help them develop a realistic, detailed picture of what they are stepping into.” 

Engineering Successful C-Suite Transitions 

Based on extensive work with PE firms and their portfolio companies, we’ve identified the most effective ways to vet step up candidates and then support and accelerate their impact.  

Pre-Hire: Three Essential Assessments 

1. Leadership Assessment 

A thorough leadership assessment forms the foundation of successful first-time executive placement. It delivers: 

• A clear view of the candidate’s strengths, gaps, and development priorities 

• Insight into the most critical success factors for the specific role 

• Tailored recommendations to close any gaps 

“Great onboarding starts before day one with a holistic leadership assessment to pinpoint an executive’s greatest strengths and growth areas,” Reed explains. “Once hired, reviewing these results with the candidate within the first 30 days on the job and incorporating the insights into the development plan is a powerful way to accelerate an executive’s impact.” 

2. Back-Channel References 

Don’t overlook back-channel referencing, or speaking with former colleagues, direct reports, and other stakeholders beyond the provided reference list. 

“This provides us with a 360-degree review of past performance, how the candidate is viewed by others they have worked with, and what they would credit the candidate for truly leading versus simply executing,” Moody shares. 

3. Cultural Assessment 

It’s critical for candidates to align with both the portfolio company and the PE firm – often very different cultures. Look for adaptability across different environments. 

Pro tip: Observe how candidates respond to guidance during interviews. Moody notes, “When we coach candidates through the process and they ignore our input, that’s a red flag. Every interaction reveals their coachability.” 

Post-Hire Success Systems 

Once a first-time executive is selected, three critical support mechanisms boost a first-timer’s odds of success: 

1. Detailed Scorecards 

One tool can make or break a first-time executive’s success: a detailed performance scorecard. This tool works double-duty. During hiring, it helps firms evaluate whether candidates can deliver specific 12-24 month objectives. Once they’re hired, that same scorecard becomes the candidate’s roadmap – spelling out exactly what stakeholders expect them to accomplish. 

“Pressure-testing this scorecard with the executive during onboarding is crucial,” Reed notes. “They need to understand what’s most important to stakeholders from day one.” 

The payoff? Using one consistent scorecard from interview through performance reviews eliminates the classic disconnect between what was promised during recruitment and what actually gets measured on the job. 

2. A “Golden Triangle” of Mentors 

It’s essential to surround a first-time executive with three key mentors:  

• A PE firm sponsor (often an operating partner) – shields from internal politics 

• A board member – provides governance perspective 

• A peer executive from another portfolio company – shares real-world lessons 

This “golden triangle” helps new leaders navigate challenges, absorb best practices, and stay focused on growth.  

“No executive should be on an island, especially first-timers in PE-backed roles,” says Reed. “These mentors accelerate learning curves and help build critical relationships.” 

3. Implementing a Structured 90 to 100-day Onboarding Plan 

Successful transitions require structured onboarding plans that connect new executives with key stakeholders early and often. 

“The deal lead, board chair, human capital lead, and fellow C-suite executives all play crucial roles in helping new leaders understand expectations and ways of working,” Reed explains. 

These early alignment conversations pay dividends, especially when challenges arise. Having these relationships already established makes all the difference. 

The Make-or-Break Challenge: Inherited Teams 

Beyond these strategies, first-time executives face unique challenges when inheriting existing teams. Unlike building from scratch, first-timers must quickly earn trust and establish authority with employees who may be skeptical of change or loyal to past leadership. This gets trickier when founders remain involved.   

“Founders often stay engaged in some capacity, leading the new executive to walk a fine line of making changes while still respecting the company’s history and previous direction,” Moody shared.  

Five Actions that Accelerate Team Trust 

Smart first-timers follow this playbook: 

1. Listen first: Understand the team’s dynamics, history, and individual motivators before introducing changes. 
2. Deliver quick wins: Make meaningful improvements early to build credibility fast.  
3. Create predictable rhythms: Establish regular team meetings and structured check-ins to provide stability during transition. 
4. Set clear expectations: Hold early one-on-ones to eliminate ambiguity and establish mutual expectations.  
5. Seek feedback proactively: Building psychological safety through genuine input gathering helps avoid blind spots. 

“The ability to quickly unite and mobilize an inherited team often determines first-year success,” Reed observes. “Those who approach this challenge with humility and structure consistently outperform those who try to impose change too quickly.” 

Measuring Success: The ROI of First-Time Talent 

Two key metrics reveal whether your first-time executive investment – and your onboarding program – are paying off:  

• Speed to impact: Are they driving meaningful progress on the value creation plan faster than benchmarks? 

• Retention: Are they keeping top talent around long enough to execute the strategy? 

Comparing financial results to industry averages and other portfolio companies can also help distinguish the impact of the leader versus broader market conditions. 

The question isn’t whether to hire first-time executives – it’s how to set them up for success. PE firms that master the formula unlock a deeper talent pool and drive superior returns. 

A very special thank you to Kelly Reed, PhD for her insights. To find more information about Summit Leadership Partners, visit https://www.summitleadership.com/.