According to a recent report by Grant Thornton, UK-based private equity funds have around £190bn of uninvested capital available for deployment over the next three to five years. And after a slow 2025, investors are looking to put that capital to work.

However, funds are not simply looking to use this substantial amount of capital for the sake of it. PE firms are being more selective about where they invest, how they create value and, increasingly, who they put in place to deliver it.

For the talent market, this is creating an interesting dynamic. Funds remain cautious when it comes to permanent hires and continue to place a premium on proven private equity experience. At the same time, the need for experienced operators who can step into a business and deliver results is increasing.

From a recruitment perspective, this is producing a market where experience carries significant weight, but where speed and access to the right networks are becoming equally important, too.

From caution to deployment

2025 was a relatively subdued year for UK private equity, with deal volumes falling against a backdrop of economic uncertainty, valuation gaps and geopolitical pressures. However, 2026 has brought greater optimism, especially as we move into the final third of the year. In fact, 70% of UK PE firms plan to increase their investment levels in 2026.

But this should not be viewed as a return to the market conditions of previous years. Funds are still underwriting cautiously, with a much sharper focus on quality, resilience and the potential for operational value creation. And that shift has significant implications for management teams and talent.

The rise of the proven operator

One of the clearest recruitment trends we are seeing is the continued premium placed on candidates with proven private equity experience. Investors want people who understand the pace, accountability and reporting requirements of a PE-backed environment and who can demonstrate that they have delivered tangible results before. That experience is therefore a significant trump card for candidates looking for their next move.

However, this laser focus can mean that the talent pool becomes very narrow. It can also make it harder for high-potential candidates to get their first opportunity within the PE ecosystem.

We’re also seeing a rise in importance of sector expertise. Candidates who understand the dynamics of a particular market, its customers, supply chain and regulatory environment can bring enormous value to a portfolio company, and PE firms are increasingly recognising that.

Interim talent offers a compelling solution

Experienced interim executives can provide the reassurance of a strong track record without the commitment of a permanent appointment. As such, we expect interim hiring to remain an important part of the PE talent landscape for the rest of the year.

Whether the requirement is an interim CFO to stabilise a finance function, a transformation specialist to deliver a specific value-creation plan, or an experienced operational leader to prepare a business for its next stage of growth, interim talent can provide immediate impact.

It also gives investors greater flexibility. Rather than making a permanent appointment before the requirements of the business are fully understood, funds can bring in someone with the relevant experience to deliver a defined objective and assess the longer-term leadership requirement from a stronger position.

In a market where speed and execution are becoming increasingly important, that flexibility has real value.

Industrials are moving up the agenda

In terms of wider market trends, while business services, professional services and financial services continue to be among the most heavily invested sectors by PE funds, this year, industrials have emerged as a notable growth area.

Investment interest has increased across areas including industrial supplies, aerospace and defence, and construction and engineering, sectors that offer a combination of tangible assets, specialist expertise, structural demand and, in many cases, opportunities for consolidation and operational improvement.

For talent, this creates a particularly interesting opportunity. Industrial businesses often require leaders with a different combination of skills: operational discipline, technical understanding, commercial acumen and experience of scaling or transforming complex organisations.

As investment increases in this sector, competition for those individuals is likely to increase too.

AI is changing the investment conversation

As is the case in many industries, Artificial Intelligence is now an important consideration at almost every stage of the investment process.

For PE firms, the question is not simply whether a company uses AI, it is whether AI could fundamentally change the economics of that business. Either positively or negatively.

Businesses that can use AI to scale more quickly, improve margins, increase productivity or accelerate decision-making can be viewed as an attractive opportunity. Conversely, however, companies whose business models are particularly vulnerable to AI disruption face a greater level of scrutiny.

Interestingly, this is contributing to renewed interest in businesses where the value proposition is more difficult to digitise or automate. Bricks-and-mortar operations, specialist industrial businesses and companies with highly technical or physical capabilities can offer a degree of resilience against some forms of AI disruption.

From a talent perspective, investors are looking for leaders who understand how technology can be used to create value, but who also know how to protect businesses from the risks it can present.

Relationships matter

For all the changes taking place across private equity, one thing remains consistent: relationships matter.

PE firms are making significant investment decisions, often within tight timeframes, and they need confidence that the people they bring into their portfolio companies will deliver.

This is particularly relevant for small and mid-cap funds. Rather than engaging a large executive search firm and waiting months for a search process to run its course, many are seeing the value of specialist boutique firms with deep-rooted networks and the ability to move quickly.

At Mackie Myers, recruitment in the PE market is not simply about presenting a shortlist of candidates, it’s about understanding the investment, the plan, the challenges facing the portfolio company, and the type of leadership required to deliver the outcome. That requires trust on both sides.

The PE market may be entering a more active phase, but it remains a cautious one. Funds have capital to deploy, but they are not prepared to compromise on the quality of their investments, or the people they put in charge of delivering them.

The people behind the investment

Taken together, these trends point towards a private equity market that is becoming more sophisticated.

Capital is available, deal activity is returning, new sectors are gaining momentum, and the pressure to create operational value is becoming increasingly central to the investment process.

Against this backdrop, talent is a critical differentiator.

Proven PE experience remains highly valued, but sector expertise, commercial impact and the ability to navigate change are increasingly important too.

For funds and portfolio companies, having access to the right people, and being able to move quickly when the right opportunity arises, can make a significant difference.

For recruitment partners, our role is becoming increasingly consultative. Clients need market insight, access to hard-to-reach talent, and the ability to move swiftly.

At an exciting but cautious point in the PE cycle, having the right people around the table could be one of the most important investments a fund makes.

If you would like to discuss market trends or hiring strategy, our team would love to continue the conversation.