Private equity confidence is back: how US deals are reshaping CPO hiring in the UK

Over the last six months, I have seen confidence return to the private equity market. After a prolonged period of caution driven by the pandemic, economic uncertainty and ongoing volatility, funds are once again showing a greater appetite to transact. For many investors, uncertainty is no longer a short-term disruption. It is the operating environment, and organisations are adapting their business strategy accordingly.

Alongside this shift, restructuring activity has increased. Businesses are repositioning, reassessing leadership roles and making more deliberate decisions about where value is created. Public markets remain unpredictable, with the initial public offering route off the table for many since 2022. As a result, founders, Chief Executive Officers and leadership teams are taking a closer look at what they have today and whether it genuinely supports future business growth.

For a growing number of technology and healthcare businesses, the United States private equity ecosystem has become the preferred destination. Access to deeper funding lines, a higher tolerance for pre revenue models and a well-established financial ecosystem continue to differentiate the US from the United Kingdom.

To add further context, I asked James Ellis, an exit specialist who has advised on more than 30 mid-market transactions, many involving US acquirers, to share his insider perspective on how private equity expectations are evolving

„Globally, private equity has more than USD 2 trillion of dry powder, capital that has been raised but not yet deployed. Despite this, the market for new investments has become more nuanced, with traditional levers of value creation now much harder to rely on.“

James Ellis

What US private equity looks for versus the UK

From both a founder and investor perspective, expectations differ meaningfully between markets. In the US, private equity firms often prioritise pace, scalability and clarity in decision‑making. Leadership teams are expected to operate with autonomy, supported by data analytics, defined metrics and clear accountability to stakeholders.

In the UK, there is typically greater emphasis on governance, sustainability and long‑term retention. This influences how critical roles are defined and how leadership team capability is assessed. Neither approach is inherently stronger. Each reflects the realities of its broader ecosystem, regulatory environment and capital expectations.

What has changed is the level of crossover between these models. Since the pandemic, leadership teams have become more global and more fluid. Markets that once operated independently are now influencing one another, particularly around supply chain resilience, digital transformation and workforce planning.

„According to Bain’s 2026 Private Equity Report, a new investment now needs to deliver average EBITDA growth of around 12% per annum over the life of the investment to achieve target returns, compared with closer to 5% a decade ago.“

James Ellis

The impact on the Chief People Officer market

One of the clearest consequences of this shift is in CPO and CHRO hiring. As revenue and headcount growth increasingly focus on North America, many boards are asking whether the people leader should be based there.

In response, I am seeing more leadership roles either relocated to the US or structured as dual‑location positions. In some cases, this is achieved through internal mobility. In others, it involves a first time external appointment into a newly created role. Increasingly, organisations are running parallel searches to compare talent pools across markets before finalising hiring decisions.

For the CPO, this creates both opportunity and complexity. Proximity to the CEO, access to the boardroom and influence over business goals all matter. As these dynamics shift, people strategy must evolve alongside them.

„With multiple expansion harder to achieve and debt more constrained, private equity returns are increasingly driven by organic growth and operational improvement. Any growth plan ultimately comes back to people, which is why the role of the CPO has never been more critical.“

James Ellis

Compensation realities and commercial expectations

There remains a meaningful compensation gap between the UK and the US, but context is critical. In a recent market mapping exercise I conducted for a client, focused on a specific Chief People Officer mandate, the UK‑based role was benchmarked at a base salary of GBP 220,000 to 250,000.

When validating this with my network in New York and San Francisco for an equivalent role profile, the comparable base salary ranged from USD 250,000 to 400,000. Variable pay structures were broadly consistent, typically blending short‑term incentive and equity.

What stood out was not just the headline numbers, but the mindset. In the US, there is often greater acceptance of reduced short‑term incentive in favour of equity, particularly in startup and pre‑revenue environments. This reflects a stronger alignment between leadership team incentives and long‑term value creation, even where organisations are still operating at cash burn.

For boards and stakeholders, these differences require informed decisions. Compensation design, succession planning and leadership track record must always be assessed within the context of the specific role, market and growth stage.

East meets West in leadership models

Historically, US leadership ecosystems were concentrated around San Francisco and New York. Today, there is far greater flexibility. Leaders travel extensively, operate remotely and manage teams across regions including Europe, the Middle East and Asia. The UK continues to play a pivotal role in bridging the US and APAC from a time zone and leadership connectivity perspective.

Interestingly, there is often less appetite for domestic relocation within the US than there is for international mobility from the United Kingdom. UK‑based HR leaders frequently demonstrate greater pragmatism around location, which can be a real advantage in global executive search.

The United Kingdom continues to develop highly commercial human resources leaders with strong global exposure. Many have built their careers in multinational organisations before transitioning into private equity‑backed environments. This brings depth across change management, strategic planning, talent acquisition and workforce planning.

One emerging challenge relates to transaction exposure. With fewer deals completed over the last three years, some CPOs have not yet experienced an exit or acquisition. Depending on the maturity of the leadership team, this can either be a limiting factor or not feature heavily in requirements at all.

Different routes into HR leadership

In the US, it is more common for HR leaders to enter the profession through executive search, talent or broader human capital roles. This often results in a more outward‑facing profile, with strong stakeholder engagement skills and confidence operating in a competitive market.

The Chief Administration Officer (CAO) role is also more common, particularly on the West coast. In these structures, the Chief People Officer remit may expand to include legal, customer support or real estate. This raises an interesting question around future leadership pathways and whether this could become a route into Chief Operating Officer roles.

Among UK founders and boards, this flexibility is increasingly appealing. As organisations scale internationally, leadership roles that combine people strategy with operational oversight can support more effective business growth.

What this means for boards and founders

For organisations navigating growth amid volatility, my advice is consistent. Run dual‑location searches where possible. Be transparent with candidates about potential role evolution. Assess communication styles carefully, particularly within geographically dispersed leadership teams.

Robust assessment frameworks, supported by data analytics and clear metrics, help reduce risk. Cultural alignment, well‑being and sustainability are no longer secondary considerations. They sit at the centre of informed decisions in the boardroom.

The role of the recruiter in this environment is not simply to fill new roles. It is to provide perspective. Effective executive search supports better decision‑making by grounding ambition in market reality.

Looking ahead

As private equity activity continues to accelerate, expectations of HR leaders will continue to rise. The Chief People Officer sits at the intersection of people strategy, business strategy and execution. In periods of restructuring and growth, that position becomes even more critical.

This is not a short‑term shift. It reflects a structural change in how organisations build leadership teams across markets. For CPOs, founders and stakeholders alike, the challenge is not choosing between the United States and the United Kingdom. It is understanding how to leverage the strengths of both.

As part of this series, I will continue the discussion through interviews with CPOs in both markets, founder and Chief Executive Officer perspectives, and conversations around progression into broader leadership roles.

If you would like to discuss how these dynamics affect your leadership team, succession planning or upcoming hiring decisions, I am always happy to share perspective. Get in touch here.