From Carveout to Standalone: Establishing HR Leadership for a New Entity

The Client

Our client is a technology-focused investment firm based in the United States, with a portfolio company that has grown into a $160M carve-out. The carve-out is in the early stages of operating as a standalone entity, and as such, requires expert leadership to set up and scale the Human Resources (HR) function. As a company poised for growth in the competitive technology, media, and telecommunications sectors, it was clear that HR leadership would be critical to managing and driving the integration and success of the business in its new, independent form.

The Challenge

The client’s primary challenge was the need for an Interim Chief Human Resources Officer (CHRO) to stand up the HR function for a newly independent entity. This included the implementation of HR technology, creation of a total rewards plan, establishment of payroll systems, and the development of HR-related back-office processes and systems. The role was vital to ensure the smooth transition of HR operations from the parent company to the carve-out, setting the foundation for the new entity’s long-term success.

Key objectives of the Interim CHRO were:

• Oversee the seamless transfer and operationalization of HR systems from the parent company.
• Implement HR technology for the new entity.
• Design and roll out a total rewards strategy, including compensation, benefits, and payroll.

For this high-visibility, hands-on role, the ideal candidate needed to have prior experience with similar carve-outs, especially in private equity-backed businesses. The client required a strategic yet execution-focused leader with expertise in implementing HR technology (HRIS) and rolling out comprehensive HR systems, all while driving operational efficiency in a fast-moving environment. 

Our Approach

To address this critical need, we launched a focused search for an Interim CHRO with specific expertise in HR carve-outs, private equity-backed businesses, and HR technology implementations. We carefully screened over 140 candidates with backgrounds in HR leadership, M&A integration, HRIS implementation, and private equity environments.

Working closely with the client’s executive team, we refined the candidate profile to ensure the right fit for the challenges at hand. The role required someone with both strategic insight and the practical, hands-on ability to lead through the complexities of an HR carve-out. We placed particular emphasis on candidates who had successfully set up HR functions from scratch or managed HR transitions in similar carve-out situations, with a strong focus on HR technology, benefits design, and payroll systems.

The Placement

The selected candidate stood out for their extensive HR leadership experience, particularly in private equity-backed businesses. They combined technical HR expertise with strong leadership skills, excelling in building and leading high-performance teams in dynamic environments.

With a proven track record of transforming non-existent HR functions into fully operational teams, they also bring deep expertise in HR systems, including HRIS implementations and streamlining back-office processes for newly independent companies. Their experience includes working closely with Private Equity operators, presenting HR updates at Board meetings, and collaborating with Managing Partners. Bilingual in English and Spanish, they offer a global perspective on talent management, employee engagement, and M&A integration.

The Outcome

The search was completed within a rapid timeframe, with the Interim HR Lead starting in the role shortly after the client’s engagement. Since joining, the candidate has been instrumental in setting up the HR department for the new carve-out entity. They have played a pivotal role in managing day-to-day HR operations while also aligning the HR strategy with the long-term goals of the business.