5 Talent Trends Reshaping Private Equity-Backed Healthcare

In today’s dynamic healthcare market, investors are compelled to play the long game with many of their portfolio companies. Private equity executives are grappling with extended exit timelines, intensifying competition, and mounting pressure to squeeze more return from every deal. This demanding reality is reshaping how firms think about value creation, especially when it comes to their talent strategies.  

Based on our work with leading investors and their portfolio companies, we’ve identified five emerging talent trends in the healthcare industry. Here are the most significant shifts we’re seeing:  

Trend 1: Pre-Deal Advisors are Redefining the Game 

Dry powder remains near all-time highs while the deal markets remain sluggish. A diverse array of healthcare investors often gravitate towards the same themes and subsectors when it comes to deploying capital. To get ahead of the competition in today’s deal market, private equity firms are increasingly partnering with pre-deal operators who bring deep subject matter expertise to shape investment strategies and strengthen deal teams in the pursuit of new platforms. While some firms have long used this operator-first approach, many more are now rapidly adopting this model as competition for quality assets intensifies.   

Trend 2: Lack of Talent Inventory Requires a New Sourcing Playbook 

The slowdown in healthcare transactions has dried up the usual pipeline of seasoned executives typically available after exits. This talent shortage is forcing hiring teams to be more creative in accessing executive talent. One effective tactic has been targeting leaders in deals made during the 2021 and 2023 valuation peak that are now underperforming against projections. While it’s crucial to determine whether performance issues stem from leadership, market conditions, or inflated acquisition prices, the reality is that exceptional executives are often constrained by overvalued deals and may be receptive to new opportunities. By targeting high-caliber leaders that are trapped in suboptimal situations, hiring teams have the opportunity to unearth hidden gems.  

Trend 3: Unrelenting Demand for Go-to-Market Executives 

With exit timelines extending well beyond initial expectations – stretching from five to as long as nine years – investors are doubling down on building powerful and sophisticated organic growth engines within their portfolio companies. As a result, we’re seeing a significant increase in demand for go-to-market leaders such as Chief Revenue Officers, Chief Marketing Officers, and Chief Growth Officers. While strategic acquisitions continue to play a role, robust organic growth has become essential for driving revenue, EBITDA, and achieving the multiples necessary for successful exits in today’s market.  

Trend 4: Chief Digital Officers Needed to Lead Digital Revolution 

Traditionally rooted in people and services, healthcare businesses are now racing to digitize operations to unlock new efficiencies, optimize care delivery, and scale faster than ever before. This shift has created a surge in demand for Chief Digital Officers and Chief Information Officers who can transform legacy systems while driving measurable ROI. These leaders are no longer optional, as they systematically reduce labor dependencies, enhance profitability, and create sustainable competitive advantages that directly impact valuation upon exit.  

Trend 5: Revenue Cycle Management (RCM) Roles Emerge as Value Creation Lever 

Historically viewed as a back-office function that only received Board or CEO attention when underperforming, Revenue Cyle Management (RCM) has transformed into a strategic differentiator for healthcare businesses. When optimized by forward-thinking leaders, the RCM function is a key driver of both top- and bottom-line growth. Especially within larger healthcare enterprises, strategic RCM leaders are being elevated to the ranks of the senior leadership team. This next-generation of RCM leader is stepping in to overhaul outdated systems, implement AI solutions, streamline people-intensive workflows, and strategically leverage global resources, thus reducing operating costs, enhancing scalability, and improving cashflow. The shift in the RCM function from cost center to value driver also explains why PE firms are persistently investing in RCM platform businesses. 

The emergence of these five talent trends highlights a significant change in how PE firms are approaching value creation in healthcare. Forward-thinking investors now see the right talent not just as operators, but as an engine for transformation and value creation.  

In today’s environment of extended hold periods and low deal flow, having the right leadership is the critical differentiator between average and exceptional returns. PE firms that master these emerging talent dynamics – seeking untapped executive potential, upgrading strategic functions, and embracing digital innovation – will build stronger portfolios capable of commanding premium exits in any environment.