Private Equity in Spain: how it’s transforming management careers 

In the last 10 years, Private Equity funds have gone from being one-off players to becoming protagonists in the Spanish business fabric. This phenomenon has not only changed the ownership of many companies, but also the logic of their leadership. As an executive search firm specialising in executives, we have been able to closely observe how this evolution has reshaped the careers of many managers: more intense projects, better remuneration… but also shorter and more demanding. 

I share some keys and figures to understand the real impact. 

What has happened to Private Equity in Spain? 

In terms of activity, the growth in investment and number of operations in Spain has been undeniable in recent years. According to the 2024 Spaincap Statistical Report, Spain reached its fourth best historical investment figure in Venture Capital and Private Equity in that year. 

In fact, Spain is already one of the most prominent European markets in Private Equity activity, after countries such as the United Kingdom, France and Germany. 

And what is the impact of all this? From linear races to intense stages 

Funds usually work with clear horizons returns in 3 to 5 years. This has shortened the tenure cycle of many executives, who are now leading phases of growth, professionalization or transformation… with an expiration date. 

• Less “career plan”, more “mission with specific objectives” 
• Strong pressure since the first quarter 
• High turnover after a divestment or change of control 

This context has made the manager a more mobile, more tactical figure and, in many cases, more aware of his “professional brand”. 

High remuneration, but beware of the “small print” 

The funds offer very attractive salary packages, with equity and variables linked to the success of the project. But they also demand: 

• Very high dedication, high performance and immediate delivery 
• Ability to lead under pressure, with no room for heavy structures 

For some, this stage is a springboard. For others, it can be exhausting or misaligned with their long-term vision. 

And what profiles are the funds looking for? 

Funds are looking for managers with an execution mentality, not a maintenance mentality. I mean: 

• Leaders who understand both the business and the investor’s financial logic 
• Executives able to create value quickly (operational improvements, efficiency, growth) 
• People comfortable with uncertainty and ambiguity 

According to McKinsey, more than 70% of the value created by PE funds no longer comes from financial leverage, but from real operational improvements. (Source: McKinsey & Co., “How private equity can build better businesses,” 2023) 

And after the bottom, what happens? 

More and more managers are considering what to do after their time in an EP: 

• Returning to the traditional corporate environment? 
• Repeat as CEO in another investee? 
• Take on a role as an advisor or board member? 

The PE experience can open many doors, but it also leaves its mark. Not everyone wants to repeat the model. Some do. The important thing is to know what professional stage you are in and what type of project suits you. 

The role of the headhunter has also changed 

It is no longer enough to evaluate trajectory and skills. Today we must also: 

• Read between the lines if the candidate is prepared for the pressure of the EP (and it really is what he wants). 
• Understand if the fund really knows what it is looking for in a manager, and if so, accompany in that definition 
• Align expectations (even more) between both parties to avoid unnecessary rotations 

When this is not taken care of, wear and tear is high… and failure, expensive. 

In short 

Private Equity has burst onto the scene in Spain, generating more opportunities, high salaries, and greater visibility for managers, but also imposing new rules of the game: shorter cycles, focus on immediate results and leadership under pressure. 

As talent professionals, we must understand this new logic, which has replaced traditional managerial careers – based on long cycles within the same company – with more dynamic trajectories, oriented towards short-term impact.