The Great Promotion, workforce management, and insights from Monroe’s Zia Uddin

Good morning, Hubsters. MK Flynn here with today’s Wire.

Onward and upward. As I settle into my new role as the editor-in-chief of PE Hub, I’m reminded I’m not the only one with a new job! It’s a busy week for new hires and promotions. Over the last couple of days, we’ve seen several private equity firms announce promotions: Berkshire Partners named five new managing directors; Thoma Bravo promoted seven principals to partner; HCI Equity Partners promoted four dealmakers; and TA Associates promoted 14 investors. Visit our website for ongoing covering of people moves.

While the popular catchphrase “the Great Resignation” isn’t really an accurate description of what’s happening in the job market, I think we can all agree that workforce management will play a vital role in private equity this year. Firms will need to work hard to recruit and nurture talent, and I expect we’ll see a wave of firms add Chief Talent Officers to lead the efforts.

Thought leaders. Our Q&A series with high-profile PE pros continues today with Zia Uddin, who was recently promoted to president of Chicago-based boutique asset manager Monroe Capital. Uddin also predicts workforce management will be an area of focus.

“We expect 2022 will continue to be very active on the M&A front, although it will be difficult to see if we will meet the record levels seen in 2021,” Uddin says. “While many of the key drivers of the record pace of activity in 2021 – underlying macroeconomic growth, significant PE and direct lending dry powder, and attractive valuations for those seeking exits – continue into 2022, 2021 benefited from pent-up demand coming out of the 2020 covid-induced slowdown and 2022 deals that were pulled forward into 2021 as sellers were looking to crystalize capital gains in 2021 ahead of the expected increase in capital gains rates. Furthermore, I’m not sure the broader financial community (e.g. PE teams, lenders, bankers, lawyers, etc.) could survive another year like 2021. Work at home, human capital management, employee satisfaction and retaining top talent will get a lot more focus in 2022.”

For more insights, see our published interviews with Pam Hendrickson, vice chairman of The Riverside Company, and David Grain, founder and CEO of Grain Management. Keep checking pehub.com for more interviews.

Also check out more 2022 forecast interviews conducted by Buyouts with five PE leaders: Joe Baratta, global head of private equity at Blackstone and a member of the firm’s board of directors; Hugh MacArthur, partner at Bain & Company and head of the firm’s global private equity practice; Brian Bernasek, managing director and co-head of US buyout and growth at Carlyle Group; Karen Frank, senior managing director and global head of equities at Ontario Teachers’ Pension Plan; Rajeev Amara, founder of Arcline Investment Management.

Nominations. We’re looking for your recommendations for rock star women in private equity, mostly on the deal side (which has been historically male-dominated). Deadline to get in your recs is January 17, for publication in March. Our annual Women in Private Equity project comprises 10 mini-profiles of highly regarded women in the industry and a feature story about some burning topic around the status of women in the industry. Check out our past coverage of Women in PE here. Reach Buyouts editor Chris Witkowsky with questions and recommendations at cwitkowsky@buyoutsinsider.com.

Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at cwitkowsky@buyoutsinsider.com. Go here for all the rules and regs!

That’s it for this morning. I’d love to hear from you. Please send all things PE deal-related to me at mk.flynn@peimedia.com.

Until tomorrow, MK