WittKieffer conducted research to understand the specific traits, characteristics, skills, and experiences of the executives leading private equity-backed physician specialty practices. We reviewed career paths, timing of appointment as it relates to the investment cycle, as well as the recent hiring trends of incumbent physician specialty practice CEOs.
Our research identified three distinct phenotypes for this chief executive role: the first-time CEO (40%), the repeat CEO (40%, with an average of 7.4 years of previous CEO experience), and the founder (20%). Notably, our data shows that there is not a definitive point in the deal cycle to transition to a new CEO, with the start dates evenly spread between pre-deal, growth stage, value maximization stage, and refinancing.
Although CEOs come from a wide range of backgrounds, including physician, private equity, and strategy, CEO and COO experience remain the most prevalent prerequisite for a new hire. Across the investment cycle, internal promotions are rare, with most CEOs appointed being external hires.
