In the world of private equity-backed health and social care businesses, the chair role is a powerful one shaping culture, enforcing governance, and ensuring that strategic decisions align with value creation.
But for many accomplished CEOs looking to transition into a portfolio career, breaking into their first non-executive chair position is tougher than expected.
At a recent Compass Carter Osborne round table, the message was clear: investors favour experience. Of the 17 chair roles Compass Carter Osborne placed over the past year, not one went to a first-time chair. By contrast, nearly half the chair appointments at listed companies during the same period were first-timers. Private equity, it seems, is playing a more cautious game.

Why the reluctance? The demands of PE-backed businesses differ from those of public companies. Urgency is paramount. Chairs must help management teams, often first-time or founder CEOs, understand how value creation links to capital structure, cash flow, and exit strategies. There’s simply less room for error.
As one panellist noted, “Sometimes, the management team just cannot comprehend the pressure the capital structure places on pace. That’s where a seasoned chair is invaluable.”
“Sometimes, the management team just cannot comprehend the pressure the capital structure places on pace. That’s where a seasoned chair is invaluable.”

So where does that leave transitioning CEOs?
Even the most successful operational leaders can find themselves overlooked for their first chair role despite having deep sector knowledge and having led PE-backed exits. Investors want proof that the candidate understands the nuances of being a non-executive guiding without interfering, supporting without taking over.
But there are ways to break through:
- Start small: Trustee roles or NED positions in smaller organisations can offer vital exposure to board dynamics without overwhelming responsibility.
- Seek mentorship: Pairing with an experienced chair or board advisor can help bridge the credibility gap.
- Diversify your experience: Involvement in M&A, governance, regulatory issues or investor relations while still in an executive role can make a big difference.
- Stay visible: Build relationships in investor networks and demonstrate a clear understanding of the investment case and exit strategies.
It’s a leap but a possible one
While some investors remain wary, others are open, particularly when a first-time chair is supported by an experienced NED team. One panellist said: “If they’ve been a CEO under private equity ownership, they’ll know how the game works. It’s about structure and support.”
“If they’ve been a CEO under private equity ownership, they’ll know how the game works. It’s about structure and support.”
In a market where the demand for non-executive talent is growing faster than the supply, investors may soon need to rethink their risk tolerance. After all, as one roundtable participant concluded: “A bright, good human being will learn what to do and do it well.”
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