Welcome to The Private Equity Podcast, by Raw Selection, hosted by Alex Rawlings. In today's episode, Jordan Burton shares his expertise on hiring, training, and evaluating executives. They discuss common mistakes private equity firms make when hiring portfolio executives, how to improve interview techniques, and the critical role of structured assessment. Jordan also covers the importance of preparing for interviews, aligning stakeholders, and ensuring a thorough evaluation process.

Breakdown: 

[00:00] Introduction to the episode and guest Jordan Burton. Overview of hiring and interviewing in private equity.

[00:28] The importance of preparation before an interview. Defining the role clearly and aligning expectations among stakeholders.

[01:26] The biggest hiring mistakes in private equity. Why many firms fail to achieve more than a 30% success rate in portfolio hiring.

[02:52] Understanding your role in the hiring process. Avoiding generic questions and ensuring structured, targeted assessments.

[04:20] How to create an effective scorecard. The value of assessing current leadership strengths and defining key success traits.

[06:15] The impact of investor dynamics on hiring success. Recognizing patterns in successful executives and adapting selection criteria accordingly.

[07:42] Why “been there, done that” is a flawed hiring approach. Focusing on upward trajectory and capability over past roles.

[09:05] The importance of structured note-taking during interviews. Ensuring consistency in feedback and preventing redundant questioning.

[11:00] How curiosity and active listening improve interviews. Creating a strong rapport to uncover valuable insights.

[12:30] Balancing assessment with selling the opportunity. Tailoring your pitch based on the candidate’s motivations and priorities.

[14:54] What truly differentiates a PE firm in hiring. How to stand out beyond compensation and equity offers.

[17:21] The role of portfolio executives in recruiting. Leveraging their experience to attract and evaluate top talent.

[19:49] Why most private equity investors are never trained in interviewing. Steps firms can take to develop better hiring processes.

[21:41] How to ask better interview questions. Moving beyond hypothetical questions to uncover real insights.

[24:02] Identifying red flags in executive candidates. Evaluating openness, honesty, and past performance patterns.

[27:25] The importance of conducting rigorous reference checks. Selecting the right references and verifying past performance.

[30:20] Post-interview best practices. Consolidating feedback and structuring hiring decisions effectively.

[35:50] The final hiring decision. Aligning stakeholders and ensuring a structured decision-making process.

Thank you for tuning in!

You can connect with Jordan Burton on LinkedIn by visiting his profile here. 

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]