Transitioning to a Private Equity-Backed Business: 3 CEOs Share Their Insights

For many executives, the decision to leave the structure of a large public or private company for the fast-paced, high-stakes environment of a private equity-backed business is a challenging one. The world of private equity is often perceived as unforgiving or “sink or swim,” where leaders face both limited resources and relentless expectations. And yet, for those who have taken the leap, the experience can be transformational. 

We recently spoke with three accomplished executives, Brian Jansen, CEO, Starwest Botanicals, Daryl Gormley, CEO, Aquamar, and Hal Kravitz, Lead Independent Director at Celsius Holdings and Former CEO, Aquahydrate, all of whom have successfully navigated the transition from being a leader in a large organization to leading an investor-backed business. 

 Their journeys highlight not only what it takes to thrive in these environments but also the benefits that come from making the leap to an investor-backed environment. From the thrill of building something new to the challenge of leading through ambiguity, these leaders offer invaluable perspectives on making the shift. 

Why Did You Make the Move to a Private Equity-Backed Company? 

Brian: I initially took the leap based on a combination of factors. Of course, the potential exit was a key element, but I also wanted to prove to myself that I could survive in the private equity environment. Before leaving my role at a multinational public company, I had been tapped to lead one of the organization’s global regions. I thought – if I’m good enough to lead this very large company over two continents, why not lead a smaller organization? 

Daryl: I was vaguely aware of private equity for a long time but was indifferent. I hadn’t really considered it. When the right opportunity came my way, I knew it was the one. The private equity firm and deal partner matched my intensity, and everything we discussed during those initial meetings – challenges, expectations, and what they would do as a result, has been honored. Some people take issue with PE, they think that it is too short-term focused. But the equity partner is very growth oriented, so it has been a great fit. I have found working with private equity to be extremely fulfilling. The focus is intense, and people are very serious and driven. That’s not for everyone, but ultimately, moving into private equity has been the best decision of my career. I wish I had done it sooner. 

How is Working in a Private Equity-Backed Business Different from Working in a Larger Organization? 

Brian: You hear all these negatives about private equity. However, I have found that in private equity, your incentives and values are more clearly defined than in a large organization. As a result, you’re able to control your destiny better than in a large company where you can more easily get caught up in a RIF with the stroke of a pen. When the company has one too many people at your level and then for whatever reason you’re the odd man out. 

Daryl: I haven’t found the intensity level of working for a private equity-backed company different from working at a large multinational. What is different though, is that the goal alignment is unmatched. You are unencumbered by the need to align, so you can just get stuff done. If you love to work and accomplish things, the environment is unparalleled. Of course, you have to deliver results, but that’s what you would want to do anyways. 

Hal: You can’t be risk averse. The only way these companies grow and really make a name for themselves is to be willing to take risks and willing to accept failure. Sometimes it’s just not going to be perfect. There’s no playbook like in a big corporation. You’re creating the playbook. You’re going to make mistakes along the way, and it’s fine, it’s acceptable. Just learn from the mistakes and don’t make them next time. 

What is Required to be Successful in a Private Equity-Backed Business? 

Brian: To be a CEO in a private equity-backed business, you need maturity, a backbone, and grittiness. You must be able to have real, unfiltered conversations with your PE partners — tough discussions where both parties push for the best outcome for the company. This role also requires strong business acumen, understanding the finances as well as the CFO, and wearing multiple hats across operations. You also need the self-confidence to build a team that balances your strengths and weaknesses and the ability to lead with heart while driving results. 

Hal: Be flexible. It won’t be like where you came from. You’ll need to pick up different responsibilities and step into areas outside your core function. Be open to learning, and don’t expect everything to be black and white. There’s a lot of gray. Understand that equity is the real opportunity — it’s about building value for the exit, not a big salary or bonus. And finally, be ready to move on when the time comes. Long tenures aren’t the norm here, and that’s okay. 

How Do You Approach Leading Differently in a PE-Backed Business? 

Daryl: In a small, private equity-backed company, you need to be prepared to approach talent differently. Your leaders and teams will not have had the same development as they would in a large multinational organization, so be ready to coach and develop. You will also be working with fewer resources – the talent you need may be different from what you can attract – so be prepared to outsource. 

Hal: In a private equity-backed company, the energy and passion are striking. People are hungry, aggressive, and driven. The stakes are higher. With tight resources, one mistake can seriously impact the company’s future. Culture and chemistry are essential because the team is small, and the right people matter more than the brand. You need to surround yourself with people who take risks and adapt, and lead with a focus on growth and support. 

What Should Someone Thinking About Making the Leap to a Private Equity-Backed Business Consider? 

Daryl: For the right person it’s as good as it gets. For the wrong person, it’s a nightmare. There are working environments that are more forgiving, and this is not one of them. Before considering an opportunity in a private equity-backed business, do some soul searching.  From day one, you need to perform. The transparency and engagement will be different from what you’ve experienced in the past – you’ll be in the fray. People who aren’t prepared for the intense level of scrutiny or candor will struggle.  

Brian: There’s a direct correlation between risk and reward. And I think that’s true as you’re thinking about making the switch. With big companies, you’re minimizing the upside and the downside. With private equity, it’s a much larger standard deviation. But if you believe in yourself and believe you have the skills you can make it happen. 

What Advice Would You Give to Someone Who is Considering Making the Switch? 

Brian: My advice is do it. If you want to do it, then set aside the excuses and go do it. 

Hal: Absorb everything you can from a big company — the training, the experience, and the problem-solving. You may not realize it, but even the most common knowledge from your background can be game-changing in a smaller, private equity-owned business. The skills and insights you pick up will be invaluable. 

Daryl: Working with private equity provides an unparalleled level of strategic alignment. For people who love to work and get things done, it is the best possible working environment that you can put yourself in. I would do it again in a heartbeat. 

Our Take: Private equity demands a builder’s mindset. The ability to adapt, problem-solve in real time, and push decisions forward is critical — waiting for consensus or perfection means you’ll be left behind. To lead effectively in an investor-backed environment, leaders must blend strategic rigor with tactical scrappiness. They need to know how to zoom out to set the vision — and zoom in to fix broken processes. Great leadership in this environment isn’t about hierarchy, optics, or politics, but rather influence, decisiveness, and the ability to mobilize people in a resource-constrained environment. Leaders who take the time to invest in cultivating the right organizational culture early on will see a significant competitive advantage over others in the marketplace.  

Private equity offers a unique opportunity for leaders ready to bet on themselves. As described by Brian, Daryl, and Hal, for those willing to roll up their sleeves, embrace ambiguity, and stay focused on outcomes, making the switch to an investor-backed organization can be a deeply rewarding path — both financially and professionally.