New Report: AI Helps Private Equity Firms Navigate ‘Talent Perfect Storm’

Bespoke Partners, the largest retained executive search firm for software and SaaS companies, today announced the release of its 1H2025 Software & SaaS Talent Market Update Report, showcasing applications of AI that help private equity firms deal with market challenges.

The report highlights four major forces driving unprecedented tightness in the executive talent market for private equity backed software companies. But new AI talent mapping techniques are proving to address talent market tightness by increasing market visibility.

“We’re seeing significant pressure on firms to produce liquidity and returns. But with deal pipelines stalling and executive turnover dropping, the search for transformational executive leaders has become more competitive than ever,” said Eric Walczykowski, CEO of Bespoke Partners. “This report unpacks the market dynamics and highlights how AI tools enable firms to navigate today’s market.”

Drawing on Bespoke’s work with hundreds of portfolio companies and private equity sponsors, the report explains how a combination of prolonged hold periods, rising demand for upgraded leadership, and limited executive movement is creating a seller’s market for top-tier talent—even as deal-flow slows across private equity in early 2025.

The 1H2025 report uncovers four primary trends shaping the private equity talent market:

  • Executive turnover is at its lowest point in recent periods, creating retention bottlenecks and shrinking the available candidate pool.
  • First-year cash compensation continues to rise, averaging $529,001 by end of 2024 across the C-suite, driven largely by mid-hold leadership upgrades.
  • Go-to-Market (GTM) leaders remain in highest demand, with the steepest turnover and increasing importance in capital-efficient growth strategies.
  • AI-enabled talent market mapping is gaining traction, helping firms mitigate blind spots and accelerate time-to-close in searches.

As part of an ongoing series, this update provides valuable insights for private equity firms as they navigate the complexities of leadership transitions and prepare for future exits in a changing economic environment.

Private equity professionals and portfolio company executives can get a complimentary copy here: www.bespokepartners.com/private-equity-talent-report/

About Bespoke Partners

Bespoke Partners is the largest firm specializing in executive recruiting for software and SaaS companies in the United States.

Bespoke-placed executives have orchestrated exits and more than 425 acquisitions by their companies, generating more than $145 billion in value.

Bespoke Partners is Built Different, with a unique firm structure, functional role focus and deep expertise in 28 software subsectors. Bespoke’s data-driven services utilize the Executive Index, a comprehensive AI-augmented talent market mapping platform. The Executive Index enables Bespoke to complete searches in less than half the industry average time with a 95% placement success rate.

The firm is the leading private equity executive recruiter for software companies, placing more than 1,400 top-performing executives into private equity portfolio companies. Successful searches include CEOs, CFOs, CROs, CMOs, CPOs, CTOs, CIOs, CHROs, Board Members, Operating Partners, Vice Presidents and many more.

Learn more at www.bespokepartners.com.

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