This month's edition of Private Equity International is filled with examples of the struggle to find and retain good people.
Bruce Rauner, the head of Chicago private equity firm GTCR Golder Rauner, recently told us he believes the industry's capital under management has ‘outstripped the talent pool.’ In other words, it might be said that the private equity industry has too much money chasing too few truly talented professionals, whether they be portfolio company managers or investment professionals.
The ability to discern and attract exceptional talent, then, becomes an important differentiating factor in a sea of firms, all of which claim to add value. No firm is more fever ishly focused on CEO talent than Bruce Rauner's GTCR. Beginning on p. 34, we profile Rauner, his firm's unique strategy, and what goes on in a smoke-filled room – literally.
In this month's Stateside column, I present the evidence for a growing interest in emerging managers, a corner of the private equity market that, more than any other, lives or dies by the perceived talent of its GPs. A newer or smaller group had better be able to demonstrate superstar potential or it will find it hard to raise any money.
This month, we also launch a new section called Venturescope, where we learn for example that a research team in Seattle is measuring the effects of ‘passionate’ pitches on venture capitalists.
Finally, we note the challenges of being a senior partner at a multi-billion-dollar private equity firm while playing in a rock band 50 nights a year. Such is the schedule of Roger McNamee (see First Round, p. 4), a co-founder of Silver Lake Partners and of the Flying Other Brothers, his band. Certainly, the limited partners in Silver Lake will miss McNamee's full energies now that he has scaled back his role at the firm, and we at least hope that they get discounts on CDs and T-shirts.
By David SnowEditor (Americas)