Your once-a-month insider on talent + alternative investments.
The Locke-Down is a once-monthly newsletter for our closest contacts on topics related to talent and alternative investments. The newsletter covers 3 simple things:
What we’re hearing in the market,
What we’re reading, and
What we’re up to.
We want to hear from you. What information would be valuable? We’re always available. Get in touch with us.
What we’re hearing
Unicorn Product Specialists are in demand. Large and mid-sized alternative investment companies are rapidly diversifying their investment offerings. We are hearing about persistent need for experienced Product Specialists with expertise in strategies like Secondaries, Asset-Based Finance, and the Insurance channel. Product Specialists provide leverage to fundraising teams and fund principals, which is especially important in this tight fundraising cycle.
A good Associate, or Gen AI? AI tools like Hebbia and ToltIQ are speeding investment diligence and raising questions about Associate hiring in private markets investment teams. One Private Credit Director says their AI tool turns-out better model and memo prototypes, faster than their deal team Associates. A Partner at another firm more diplomatically says AI tools provide leverage to their entire investment team. We side with the leverage comment, but questions about the cost of hiring and training Associates will continue to come into focus.
Chilly environment for visa sponsorship. A frost has fallen on employers’ appetite to sponsor temporary visas. Big fees and bigger changes to the H1B program are getting the press, but the real news is growing concern about “safe” visas, like the TN, for Canadians and Mexicans. Outside immigration counsel for one leading PE firm reported multiple unexpected rejections for its clients. Increased uncertainty and the potential for multi-month hiring delays is leading some previously favorable employers to stop sponsoring.
What we’re reading
(FT) Rithm Capital Agrees To Buy $17bn Private Credit Firm Crestline
(Nasdaq) Advent-led Group Takes Heidrick & Struggles Private
(Bloomberg) The Golden Age Of Value Investing Is Over
What we’re up to
Case Study – A Retained Search That Delivered What Contingent Could Not
The Situation
A private credit firm spun its wheels for months with an underperforming contingent recruiter. A Staffer on the investment team spent valuable time interviewing more than 40 candidates without making progress. Candidates were barely screened, their experience was all over the map, and the effort felt like a waste.
The Challenge
From the outside, the hire was simple – an Asset Manager. But the company’s investment strategy made for a unique challenge. The firm lends to non-sponsored, lower-middle market companies in special situations. They had a very specific hiring need – a Restructuring Advisory professional with meaty company-side experience, the gravitas to consult directly with portfolio company executives in turnaround situations, and the grit to fit the firm’s New York culture. We pitched a retained search with a true headhunting process and the firm agreed.
Our Approach
Our project team mapped the Restructuring Advisory market, including 100+ professionals at the desired level. Our Search Consultants successfully contacted 50 and interviewed more than 30 within 2 weeks. All candidates were rigorously screened for company-side experience, technical and communication skills, and culture fit. We presented a Short List of the best 7 candidates, all of which expressed high interest in the role.
The Result
7 presented. 2 Finalists. 1 home run hire. The firm hired their top choice 1 month and a day from the Short List meeting and less than 2 months from kick-off. We helped the firm navigate a competing offer and secure the best candidate in the market. She joined the team earlier this month.
The Takeaway
When it’s a niche hire, contingent recruitment is not the answer. Focus and precision are. By retaining The Locke Group, our client hired a project team of SMEs who homed-in quickly on the correct profile. They saved time, pain, and gained top talent.
If your critical search is drawn-out or you are seeing inaccurate profiles, we should talk. Reach out to us.
Sincerely,
The Locke Group
