The PE & CEO/CFO Report - June 2025 Edition: Preparation, Meet Opportunity

Scott Engler

CEO & Co-founder, Sync Executive Partners | Fmr CEB/Gartner

July 2, 2025

The exit reversal is underway. In 2022, a collapse in the tech market, frozen IPO windows, and regulatory scrutiny stalled M&A, backed up private equity exits, and triggered a domino effect—slamming VC and growth equity too. Fundraising dried, portfolios frozen. Now, after three years of gridlock, the dam is breaking: Chime’s IPO signals public markets are reopening, while both megadeals and mid-market M&A are gaining momentum as regulatory headwinds ease.

But opportunity won’t hand itself to the unprepared. Firms that built speed—through governance readiness, operating rigor, talent clarity, and decision cadence—are primed to move fast. 

Here are Our Curated PE CEO/CFO Highlights — June 2025

1. The Exit Door Cracks Open – Reuters: Chime IPO Signals Market Return

2. There's No Going Back – Bain: Key Takeaways from SuperReturn 2025

3. The Talent Tightrope – Spencer Stuart: Five Talent Trends in PE

4. M&A is Cool Again – Reuters: Global M&A Rebounds

5. CEO Talent Mirror Check – Talent Strategy Group: Three Questions for CEOs

6. AI Moves Inside – Bond Capital: TAI Report

7. Speed Is a Skill – Duke CE: Masters of Velocity

8. What Great Looks Like – Korn Ferry

9. CEO Sentiment Slams the Brakes – SBI Growth

Article Summaries & Takeaways

The Exit Door Cracks Open

Chime’s IPO marks a pivotal moment for capital markets, signaling renewed investor confidence in public offerings after a multi-year freeze. The successful debut could open the door for other private equity-backed companies that have waited on the sidelines for improved exit conditions. It also indicates that investors are willing to back scaled, profitable growth stories that have institutional-grade infrastructure in place. The market is likely to remain selective. Companies without strong fundamentals, mature governance, and defensible narratives will struggle to meet listing expectations. This is not a return to 2021 exuberance—it's a reset with higher standards. For sponsors, IPO readiness now requires sustained focus well before any formal filing.

Key Takeaways:

• The IPO window is open—but only for prepared firms

• Governance and reporting maturity drive valuation

• DPI pressure may ease for execution-ready portfolios

• Pre-IPO diligence must begin at acquisition

• CFO readiness plays a critical role in timing

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There's No Going Back

Bain's summary of SuperReturn 2025 emphasizes a structural shift in private equity investing that we've been talking about here for the last 6 months. Liquidity remains constrained, cycles are shorter and deeper, and LPs are placing more pressure on sponsors to demonstrate real operational value creation. The conference highlighted that GPs can no longer rely on multiple expansion as their default playbook—investors want to see proof of performance through hands-on transformation and measurable results. 

AI was a consistent theme, with increasing traction in both deal sourcing and value creation. Sponsors are building internal capabilities, not just outsourcing AI experiments. Europe is also capturing renewed interest as macro volatility and valuation ceilings in the U.S. push capital overseas. The message was clear: GPs that show differentiated strategies and operate with speed and clarity will outperform in this new regime.

Key Takeaways:

• There’s no going “back to normal”—markets are adjusting to a more volatile world with shorter, deeper cycles. 

• Liquidity remains tight; exits are tough and secondaries, while growing, are still underused. 

• Opportunities exist, but high multiples mean GPs must create value without relying on multiple expansion. 

• With fundraising more difficult, GPs need to actively win share to sustain growth. 

• AI is gaining traction in dealmaking, with potential to boost value creation across the deal cycle. 

• Europe is back in focus as shifting macro views and geopolitics chip away at U.S. dominance. 

• Private and public markets continue to converge, with platforms scaling fast and consolidation accelerating.

The Talent Tightrope

People risk is becoming a top-tier issue for private equity firms. Spencer Stuart highlights five trends: 1. increased CEO turnover, 2. earlier leadership assessment during diligence, 3. performance-linked DEI initiatives, 4. operator accountability, and 5. LPs demanding transparency on talent metrics.

Talent is now deeply embedded in the investment thesis. For sponsors, failing to align leaders pre-close is no longer a forgivable misstep. Misalignment delays value creation and destabilizes teams. The expectation is shifting from "hire quickly" to "vet deeply." Operational leaders, too, are being held to higher standards—not just for activity but for measurable outcomes.

Key Takeaways:

• Year 1 CEO effectiveness is mission-critical

• DEI outcomes now peer into funnel and funds

• Talent diligence is mandatory in underwriting

• Operators own measurable metrics, not just process

• Misalignment becomes a game-stopper

M&A is Cool Again

Global M&A is rebounding with renewed force. Reuters reports that megadeals are returning, buoyed by easing regulatory scrutiny and increased confidence among strategic buyers. Private equity sponsors are also seeing more traction in mid-market exits as buyers show appetite for scaled, profitable assets.

This resurgence offers fresh optionality for sponsors—especially those running dual-track processes. With both IPOs and strategic M&A back on the table, it's a moment to revisit exit strategy timing, narrative preparation, and buyer engagement across the portfolio.

Key Takeaways:

• M&A is back across all deal sizes

• Regulatory headwinds are softening

• Exit optionality returns—if you engage

• Carve-outs and bolt-ons gaining renewed PE interest

• Dual-track auctions can maximize ROI

5. CEO Talent Mirror Check

The CEO’s three questions about talent

1. What capabilities do we need to win?

2. How will we build a deep bench of high-performing talent? 

3. What’s our three-year plan to win through talent? 

AI Moves Inside

Bond Capital's latest TAI (Technology + AI) report highlights how AI is rapidly becoming foundational, not experimental. No longer a shiny object for board decks, AI is now reshaping processes across finance, sales, HR, and operations—especially in PE-backed companies with scale or growth targets. The report makes a strong case that internal, sponsor-supported AI strategies outperform bolt-on vendor solutions. Companies that develop internal fluency—across both leadership and line functions—are positioned to gain meaningful operating leverage and decision-making speed.

Key Takeaways:

• AI adoption now ubiquitous—not optional

• In-house tools deliver faster ROI than vendors

• Sponsor-led AI fluency boosts portfolio ROI

• Specific AI roadmaps are expected at portco level

• AI will reshape both roles and organizational structures

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Speed Is a Skill

Duke CE’s research reframes speed as a learned capability—not just a trait. High-performing leadership teams build speed by driving alignment, removing friction, and intentionally designing their cadence of decisions. It’s not about going fast—it’s about making better decisions faster, with less rework. The study also highlights that companies with high velocity have one thing in common: clarity. Clarity of strategy, clarity of roles, and clarity of communication. For PE firms, embedding that clarity into portfolio companies early can dramatically improve operating rhythms and execution cycles.

Key Takeaways:

• Velocity = clarity + alignment + pace

• Friction is cultural, not structural

• Weekly cadences outperform annual planning

• Leadership time signals strategy clarity

• Rhythm discipline is a performance asset

What Great Looks Like

Korn Ferry’s 2025 outlook emphasizes that the most effective CEOs are now influence leaders—not command-and-control types. They’re systems thinkers, emotionally agile, strong communicators, and strategically flexible. And they often have nonlinear career paths that prepared them for ambiguity and speed.

PE sponsors should adapt their talent criteria accordingly. Linear pedigrees and functional depth alone no longer guarantee performance. The firms that recognize and back adaptable, broad-spectrum leaders will outperform in fast-changing environments.

Key Takeaways:

• Influence outpaces authority in fluid contexts

• Nonlinear paths create adaptive leaders

• Storytelling shapes cohesion

• Purpose alignment drives resilience

• Systems thinking beats functional depth

CEO Sentiment Slams the Brakes

SBI Growth’s commercial sentiment report (via Bryan Kurey) reveals that executive confidence has taken a hit—even in otherwise healthy companies. Many CEOs are pausing hiring, delaying product launches, and slowing expansion as they wait for more stable macro signals. This caution is especially important for PE firms to monitor. Execution slows not only from external factors—but from internal tone. Boards and deal teams need to track not just performance metrics, but leadership posture. Messaging, communication, and clarity can accelerate—or stall—momentum.

Key Takeaways:

• Sentiment shifts impact execution velocity

• Boards should monitor tone, not just topline

• CFOs need to model scenarios vs sentiment

• Clarity in communication heals hesitation

• Execution speed depends on confidence

That's all for this month, DM me with any questions or typos.

📎 Source Appendix

1. Chime IPO – Reuters: https://www.reuters.com/business/finance/us-ipo-market-revival-takes-root-chime-soars-debut-2025-06-12/

2. SuperReturn 2025 – https://www.linkedin.com/posts/hugh-macarthur_private-equity-is-navigating-a-fundamentally-activity-7340401005458546690-lN-z

3. Spencer Stuart Talent Trends – https://www.spencerstuart.com/research-and-insight/five-talent-trends-in-private-equity

4. Global M&A Rebounds – Reuters: https://www.reuters.com/business/finance/larger-deals-power-global-ma-h1-bankers-signal-appetite-megadeals-2025-06-30/

5. CEO Talent Questions – https://talentstrategygroup.com/the-ceos-3-questions-about-talent/

6. Bond Capital TAI Report – https://www.bondcap.com/reports/tai

7. Duke CE Masters of Velocity – https://www.dukece.com/insights/masters-of-velocity/

8. Korn Ferry Leadership Trends – https://www.kornferry.com/insights/featured-topics/leadership/top-5-leadership-trends-2025

9. SBI Growth Sentiment Report – https://www.linkedin.com/posts/bryankurey_ceo-commercial-sentiment-absolutely-tanked-activity-7336201795016294400-Pw_q