5 In-Demand Executive Skills Leaders in Mid-Market PE Need

The playbook is shifting in mid-market private equity. Strong capital and a sharp valuation model are no longer enough on their own. Today, value creation sits squarely in the hands of leadership and the skills required at the top are evolving fast.

Whether it’s integrating AI, managing elongated hold periods, or navigating fragmented roll-up strategies, PE firms are under pressure to put the right people in charge. And not just at the top. The demand for transformation-savvy, financially astute, tech-literate executives has accelerated driven by 2024 dealmaking trends, sector activity, and operational priorities. The message is clear: leadership quality is now a critical driver of return on investment.

So what exactly are the most in-demand executive skills in today’s PE environment and what trends are shaping them?

Here are five executive capabilities climbing to the top of the priority list for mid-market private equity in 2025 backed by current data and market insight.

📈 1. Digital Transformation & AI Fluency

Technology is becoming core to value creation—not just in SaaS businesses, but across the entire mid-market.

• 78% of middle market leaders now use AI formally or informally

• 77% have adopted generative AI tools

• 83% say AI will boost workforce productivity in the next 12 months 🔗 RSM US Middle Market AI Report, 2024

Executives who can embed digital tools, automate core functions, and translate data into decisions are becoming essential. PE-backed businesses need CTOs, COOs, and even CFOs who understand how to modernise operations and scale through technology, not just oversee it.

🛠️ 2. Operational Expertise & Value Creation Execution

With less room for multiple expansion and higher borrowing costs, value must increasingly be built inside the business.

• U.S. PE deal value rose 19% YoY in 2024—the highest in two years

• In the lower mid-market, over 80% of deals were add-ons, requiring integration skills 🔗 CBIZ Private Equity Report, 2024

Operators with a track record in post-merger integration, supply chain optimisation, and cross-functional leadership are in high demand. Whether it’s margin improvement or platform scaling, execution-focused leadership is now central to investor returns.

💰 3. Financial Acumen & Working Capital Discipline

Finance leaders are under pressure to do more with less—and fast.

• Across the S&P 1500, $1.7 trillion is trapped in inefficient working capital

• Firms that actively manage working capital outperform peers by 20% ROCE 🔗 EY Private Equity Pulse, 2024 🔗 Hackett Group Working Capital Study, 2024

CFOs with experience in zero-based budgeting, liquidity forecasting, and cost-to-serve analysis are increasingly valuable. In mid-market portfolio companies, finance leaders are expected to support decision-making, drive EBITDA, and unlock trapped cash—not just close the books.

🧠 4. Sector-Specific Depth

As PE firms double down on vertical strategies, sector expertise is a real differentiator.

• 23% of PE capital deployed in 2024 went into tech deals

• U.S. healthcare PE investment reached $104 billion—second-highest ever 🔗 CBIZ Private Equity Report, 2024

Executives who understand industry regulation, customer dynamics, and commercial models can step in and move faster. In tech, this might mean navigating platform consolidation; in healthcare, it could involve managing compliance and scaling clinical infrastructure.

🔄 5. Strategic Agility & Change Leadership

PE firms need leaders who can adapt and act decisively in unpredictable environments.

• 72% of mid-market execs made a major strategic pivot in 2023–24

• 62% say they lacked internal leadership capacity to carry it out 🔗 RSM US Middle Market Business Index, Q1 2024

Executives with strong change management credentials, those who’ve led restructurings, re-orgs, or major strategic shifts, are in high demand. These aren’t soft skills; they’re hard-earned capabilities that determine whether growth plans succeed or stall.

✅ Final Thought: In 2025, Talent Is Strategy

As private equity firms sharpen their focus on value creation, the skills sitting around the leadership table matter more than ever.

Digital fluency, operational depth, financial discipline, sector insight, and the ability to lead through change are no longer nice to have, they’re essential. The firms that prioritise these capabilities early are the ones best positioned to drive growth, navigate complexity, and deliver returns in 2025.

👉 Which executive skills are making the biggest impact in your portfolio?

From AI adoption to post-acquisition integration, the demands on executive teams are shifting. Capability is becoming a key factor in how value gets created and scaled.

To discuss how Renovata can support your leadership strategy, contact us: www.renovata.com

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Renovata is a global executive search and private equity advisory firm, partnering with leading investors and their portfolio companies to place transformational leaders. With deep expertise in C-suite and board-level hires, we work across technology, business services, industrial, and consumer sectors. Trusted by 50+ of the top 100 PE and growth equity firms, we provide strategic hiring solutions that drive value creation.

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