Why experience matters: the Non-Executive Chair as a value-creation catalyst
March 4th 2025
In the fast-paced, high-stakes world of private equity-backed healthcare and social care, the non-executive chair is far more than a figurehead.
Today’s chairs are value architects, strategic guides, and the steadying hand on the tiller of growth. And in this space, experience isn’t a nice-to-have, it’s a prerequisite.
That was the clear consensus at a recent round table hosted by Compass Carter Osborne, where investors, advisors, and seasoned chairs gathered to discuss what makes a great non-executive appointment. The message? Private equity sponsors need chairs who can hit the ground running.
In fact, of the 17 non-executive chair appointments made by Compass Carter Osborne in the past 12 months, not a single one went to a first-timer.
Why the caution? Because the demands on PE-backed businesses especially in health and social care are intense. The need for immediate value creation, tight capital structures, and frequent management team inexperience mean chairs must:
Understand the deal dynamics and exit strategy,
Translate value creation plans into operational priorities,
And provide balance, instilling pace without creating panic.
A Chair’s Unique Role
One investor described the chair’s job as a blend of art and science, and perhaps more importantly, as a vital intermediary. “The CEO tells the private equity sponsor 80% of what’s going on,” one participant explained. “They tell the chair 90%. That 10% gap is where the chair and investor work together to complete the picture.”
“The CEO tells the private equity sponsor 80% of what’s going on, they tell the chair 90%. That 10% gap is where the chair and investor work together to complete the picture.”
It’s a high-trust, high-stakes triangle. And getting it wrong can mean missed targets, misaligned expectations, and missed exit opportunities.
That’s why many investors identify chair candidates before the deal goes live, often seeking individuals with sector-specific insight or complementary skillsets, legal experience for a buy-and-build strategy, for instance.
Room for Evolution?
While there’s broad agreement that experience is vital, some panellists expressed hope for amore open-minded approach to future appointments. With demand for talent growing and seasoned chairs in short supply, there may come a point when first-timers particularly ex-CEOs with PE experience are given more opportunity.
Still, as it stands, risk appetite remains low. The margin for error is slim, and the expectations are high.
In this environment, one thing is clear: when private equity is on the clock, there’s no time for a learning curve. The right chair is the one who’s walked the path before and knows exactly how to get the business to its destination.
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