Inside Blackstone's CEO Selection Process
- Editor
- Jan 29
- 2 min read
The Brief:
Fortune reports on Blackstone's rigorous CEO selection process for its portfolio companies, revealing how the private equity giant transformed its executive recruitment from an art to a data-driven science under the leadership of Courtney della Cava.
Why it matters:
Value creation: Leadership selection directly impacts the success of Blackstone's $1.1 trillion portfolio, with wrong hires potentially costing 15x an employee's base salary
Industry impact: The framework has become a model for other private equity firms seeking to improve their executive recruitment
Scale: With 250 companies in its portfolio, Blackstone's selection process affects billions in investments
The Key Moves:
Timeline: Each CEO search spans 90-120 days, involving dozens of interviews, psychometric evaluations, and board presentations
Assessment: Candidates undergo a nearly five-hour psychological evaluation to probe cognitive ability, character, and leadership style
References: The firm conducts extensive back-channel reference checks beyond provided references, reaching out to board directors, customers, and former colleagues
By the Numbers:
Portfolio growth: Assets under management grew from $88 billion in 2007 to $1.1 trillion today
Success rate: 85% of acquisitions result in C-Suite reshuffling
Candidate pool: 10-15 candidates are initially considered, with only two advancing to final stages
Key Players:
Courtney della Cava: Blackstone's global head of portfolio talent, architect of the current CEO selection process
Rosanna Trasatti: Clinical psychologist who conducts the intensive psychometric assessments
Ross Shuster: CEO of Copeland, successfully underwent the selection process in 2023
Key Quotes:
Leadership impact: "Leadership is the No. 1 driver of value creation" - Courtney della Cava
Role demands: "Being a CEO is a high-intensity sport. For the right person, it's extraordinary. But it's not for everyone" - della Cava
The Wrap:
Blackstone's methodical approach to CEO selection represents a significant evolution in private equity talent management, combining rigorous assessment methods with deep psychological insights to identify leaders capable of driving billions in value creation. The process, while intensive, has become a blueprint for the industry's approach to executive recruitment.
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