Heidrick & Struggles is set to begin a new chapter as it returns to private ownership. The world’s third largest executive search firm and leadership advisor has agreed to be acquired in an all-cash transaction by an investor consortium led by Advent International and Corvex Private Equity, with participation from several leading family offices and Heidrick leaders. Scott A. Scanlon, Founder & CEO of Hunt Scanlon Ventures, examines the implications of the $1.3 billion transaction, and what it signals for investment strategy across human capital markets.
Executive search, leadership consulting and culture shaping services provider Heidrick & Struggles International / (NASDAQ:HSII) has entered into a definitive agreement whereby a consortium of investors led by Advent International and Corvex Private Equity, and including several leading family offices, will acquire all of the firm’s outstanding public shares. This new investor consortium will include significant investment from many Heidrick leaders.
The all-cash transaction values Heidrick’s equity at approximately $1.3 billion and will enable the firm to return to private ownership, with significantly more equity participation by current and future partners and leaders, enabling faster growth and greater client impact.
“Heidrick’s stock is up 20 percent this morning on the news,” said Scott A. Scanlon, CEO of Hunt Scanlon Ventures, a global M&A advisor that has completed 25 human capital M&A transactions over the last 60 months. “Clearly, Wall Street is taking note.”
Scale Meets Strategy
A $1.3 billion all-cash acquisition in the leadership advisory space represents one of the largest transactions ever completed in the sector, a signal that private equity is now viewing human capital as a scalable, high-return investment category.
“It’s a watershed moment for the industry and proof that recruiting top leaders matured into a true investment asset class.”
“That level of capital commitment underscores the market’s conviction that executive search and leadership advisory firms can generate institutional-grade returns,” said Mr. Scanlon. “It is a watershed moment for the industry and proof that recruiting top leaders has matured into a true investment asset class.”
Heidrick & Struggles Transition to Private Ownership
Under the terms of the agreement, Heidrick stockholders will receive $59.00 per share in cash, representing a premium of approximately 26 percent to Heidrick’s 90-day volume-weighted average price per share.
Upon completion, Heidrick will become a private company and focus on rapidly advancing its global leadership positions in executive search, interim talent solutions, leadership assessment and development, as well as purpose, culture, and performance consulting.
As Heidrick’s partners, the consortium will enable the firm to invest in the people, technologies, and innovative solutions needed to create unrivaled value for current and future clients.
As an immediate example, the firm will implement a new equity plan for current and future partners and leaders.
Heidrick will continue to be led by CEO Tom Monahan, president Tom Murray, and the company’s current leadership team following the conclusion of the transaction.
“An Exciting New Chapter”
“This pivotal moment represents an exciting new chapter in Heidrick’s growth story, and a tremendous opportunity for us to join forces with an investment consortium led by two highly regarded and successful partners,” said Mr. Monahan.
“Advent and Corvex know Heidrick well and bring a unique set of financial and strategic resources that will allow us to create even more value for clients and colleagues. We know the collective expertise and resources of the consortium will further accelerate our ability to develop differentiated, deep and durable global client relationships by ensuring Heidrick is the company where the best people do their best work,” he noted.
Catalyst for Consolidation
“The Heidrick transaction marks an inflection point for the broader executive search and human capital industry,” said Mr. Scanlon.
“Private equity’s entrance at this level will only accelerate consolidation,” he noted.
“As valuations stabilize and growth platforms become harder to scale organically, more investors will look to acquire firms with brand credibility, recurring advisory revenue, and global reach,” he said.
“We see a consolidation tsunami coming,” said Mr. Scanlon.
“But we also see three large private partnerships at the top of the executive search leaderboard that will need to make pivotal decisions of their own in the next year or two,” he said.
“Do they remain independent and untethered to a private equity financial partner? If they stay the course, how do they grow? How do they invest in AI? How do they remain competitive? The headwinds ahead are as strong as we have ever seen them,” he added.
In recent years, leadership consulting and talent advisory firms have drawn increasing interest from institutional investors seeking durable, cash-generative assets. “The Heidrick deal validates that momentum — and may set off a new wave of buyouts and mergers among mid-sized search and advisory firms aiming to compete on scale, technology, and client breadth,” he said.
KKR’s Investment in ghSMART Reinforces Market Momentum
To underscore that trend, KKR recently made a minority investment in ghSMART, allowing its founder, partners, and employees to retain majority ownership.
That deal aligns with the same logic behind Heidrick’s sale: private capital is now placing serious bets on leadership advisory platforms with established brands, recurring revenue, and scalable talent models. This move reinforces that investors are treating executive search and leadership advisory as a distinct asset class ripe for consolidation.
Industry Reaction and Transaction Details
“This transaction is the culmination of a comprehensive and strategic process led by the Heidrick board of directors, including engagement with multiple parties,” said chairman of the board, Adam Warby. “We are pleased to have reached this agreement with the consortium, which provides significant and immediate cash value to our stockholders while positioning the company to attract, retain, and develop exceptional talent to deliver unrivaled client impact.”
“Heidrick & Struggles has long been trusted by boards and C-suites because of its history of strong leadership advisory and management services, as well as its ability to attract and engage the best talent,” said John DiCola, managing director at Advent. “Along with the company’s partners and Corvex, we see significant opportunities to help strengthen the firm’s market position by growing its product offerings and expanding further globally.”
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“We are excited to partner with Advent, management, and the entire Heidrick team, to return the company to private ownership and build on Heidrick’s exceptional foundation to accelerate growth and continue driving superior value for clients,” said Joe Costa, managing partner of Corvex Private Equity.
“Heidrick & Struggles has a strong brand and reputation for acting as a trusted advisor to high performing organizations as they make their most important leadership and talent decisions,” said Carmine Di Sibio, former chairman and CEO of EY and Advent operating partner who advised the consortium on the transaction. “As a private company the team will continue to build on that legacy, expand the firm’s capabilities, and deliver for their clients worldwide.”
The transaction, unanimously approved by Heidrick’s board of directors, is expected to close by the first quarter of 2026, pending regulatory and stockholder approvals.
Upon completion, Heidrick will no longer be publicly listed and will continue operating under its existing brand and leadership team. Its new owners, Advent and Corvex, have secured committed financing from Deutsche Bank, UBS Investment Bank, and Santander, with participation from Heidrick leaders and several prominent family offices.
Article By
Scott A. Scanlon
Scott A. Scanlon is Co-CEO of Hunt Scanlon Ventures, which was formed to assist human capital firms realize their full investment potential. Scott has spent the last three years building the firm’s M&A advisory unit, which now offers a full range of critical solutions to guide founders and their management teams to successful exits. Connect with Scott.
