Private Equity Insights: Rapid Growth is Not All Roses

Over the past five years, the Private Equity (PE), Hedge Funds & Investment Vehicles industry in the US has grown to reach revenues of $229 billion in 2018. This is during a time when investors are demanding more, there is stronger market competition and the industry has undergone extreme increases in regulatory expectations. In the same time frame, the number of PE businesses has grown and the number of employees has grown by 8.8%.[1] To deliver on the expected investor returns when faced with such growth, can PE firms consistently attract great top-level leadership and retain high-quality talent?

According to NES Financial, CFOs and fund managers are making it a top priority to attract and develop PE talent, yet they continue to be challenged with the ability to hold on to good employees. This stems from three factors:

  1. Talent scarcity in the PE sector has escalated as the demand for new capabilities has grown. It’s no longer a question of whether or not to use third-party providers to fill gaps but rather which functions PE funds should outsource.
  2. There are significant costs associated with developing talent to fill current and future needs.
  3. Deciphering benefits that resonate with Millennials extends well beyond just compensation.

Holding onto Good Employees
This is where working with a Professional Employer Organization (PEO), like Oasis, can help. For example, without proper compensation analysis, companies may be under or overpaying employees. This can lead to retention issues, particularly in the current environment where the labor market is tight and PE firms are competing for a limited supply of talent. Or if employees are being overpaid, this can negatively affect the profitability of the business. Oasis provides tools and expertise to perform compensation analysis on a local and regional basis. This ensures PE companies have the right information and insights to retain employees and operate cost-effectively.

We also enable small portfolio management companies to offer best-in-class benefits packages equal to those offered by Fortune 500 firms. Such benefits include medical, dental, vision, life, disability, EAP, Employee Advocacy, Telemedicine, 401(k), and employee discount programs as well as voluntary, portable products such as accident, critical illness, level term life and disability income insurance.

Oasis’ Human Resources Services department can offer training programs, helping you to establish a performance management plan and assist you with the professional development of your employees.

The Oasis eLearning Center offers thousands of complementary courses, books, videos and resources as part of our eLearning program. Topics include Compliance, Leadership, Management, Microsoft Office skills, Customer Service and many more. In addition, webinars on a variety of employment-related and management development topics are presented in one-hour sessions with time allowed for interactive discussions.

Are you geared for growth and have the ability to attract and retain the best talent? Oasis, A Paychex Company, can help. Visit www.OasisAdvantage.com/Private-Equity or call 866-709-9401.

[1] https://www.ibisworld.com/industry-trends/market-research-reports/finance-insurance/funds-trusts-other-financial-vehicles/private-equity-hedge-funds-investment-vehicles.html

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