Talent Strategy: Private Equity Is Finding Value in Freight

We’re discussing talent strategy – how private equity is finding value in the freight industry. As M&A activity slows and valuations recalibrate, PE firms aren’t just chasing platform deals—they’re recalibrating around models that are recession-resistant, operationally efficient, and led by executives who can unlock value from day one. Recent research from the Boston Consulting Group (BCG), along with other industry studies, reveals the exact traits that separate winners from laggards. 

Here’s what PE needs to know about hiring executives in transportation, logistics, and supply chain to thrive in this next transaction cycle.

Talent Strategy For Freight & Supply Chain Environment Today

The U.S. freight transportation sector has slid into something close to a recession since the post-pandemic boom. Freight rates and volumes are softer; costs for labor, equipment, insurance, and fuel are rising. Tariffs and geopolitical tension introduced in early 2025 have added further pressure, increasing uncertainty, especially for businesses exposed to international trade regions.

Amidst all this, transaction activity has dropped sharply. In 2021, there were over 50 deals valued at more than $100 million; in 2024, the number decreased to fewer than 20. Sellers are often holding, waiting for better valuations. Meanwhile, buyers (especially PE and corporates) are more cautious overall due to squeezed margins and rising costs. 

Tariffs and geopolitical risk aren’t backdrops to all of this; they’re the drivers. Many logistics and supply chain companies are facing increased costs due to duties, delays, and regulatory uncertainty. Nearly 80% of shippers in a recent BCG survey reported cost increases from tariffs and duties; many are seeking ways to renegotiate freight contracts and adapt supply chain models.

 

What PE Firms & Buyers Are Looking for Now

In response to those challenges, PE firms and strategic acquirers are prioritizing specific characteristics in target companies—and in the leadership of those companies:

1. Resilient Revenue Models
   Businesses with recurring revenue (contract logistics, dedicated carriage, long-term contracts) are more attractive. Such companies often have built-in protection against freight-rate swings or inflation.
2. Specialty / Niche Segments
   Vertical specialization (such as cold chain, food, energy, and essential goods) or exposure to domestic transportation lanes (which are less vulnerable to international trade disruptions) are increasingly valued.
3. Cost Efficiency & Operational Excellence
   LEAN operations, optimized fleets, better routing, predictive maintenance, and digital tools that increase visibility and reduce waste are central.
4. Supply Chain Adaptability & Trade / Tariff Expertise
   Firms that can model and respond to trade-policy shifts, manage tariff exposure, navigate compliance, find alternative sources, or relocate production are especially valuable. Near-shoring, dual sourcing, and resilient supply networks are top of mind. 
5. Leadership That Thrives in Volatility
   Today’s landscape requires executives with proven track records of navigating regulatory changes, trade shifts, and margin pressure. That means having more leaders who can drive transformation and cost restructuring without losing organizational momentum, combining strategic thinking with operational pragmatism.

 

Executive Profiles in Demand in Freight & Logistics

Given what buyers are looking for, here are the kinds of executive profiles PE firms should prioritize:

• Portfolio / Operations Leaders: Leaders who can standardize performance across assets, ensure consistency in execution, and pump up margin curves by optimizing across business units. Portfolio operations leadership is increasingly a differentiator between PE firms that succeed and those that merely keep pace.
• Functional Specialists in Trade, Tariffs, and/or Risk: Experts who understand customs, classification, supply-chain legal/regulatory risk, HS codes, duty mitigation, and compliance. These roles can help protect margins and mitigate downside exposure. 
• Digital / Technology Leadership: CIO/CTO/COOs with strengths in data, AI, routing, visibility, operations-tech, predictive maintenance. These aren’t simply digitizers, but leaders who can leverage technology to reduce costs and add resilience. 
• Change / Cost Restructuring Experts: Those who succeed in downturns, or through complexity—turnarounds, margin restoration, scaling cost discipline while maintaining strong people skills (since change management is complex in these sectors).

 

What Makes an Executive Search Partner Effective for PE Now

When PE firms are hiring or replacing leadership in this challenging environment, the search partner makes a big difference. Here’s what best-in-class search, like the search solutions at GESG, looks like:

• Deep Domain Specialization in transportation, logistics, supply chain—understanding spot vs contract freight, domestic vs international exposure, asset-intensiveness, perishable vs non-perishable, regulatory burdens, etc.
• Rigorous Assessment of Resilience & Adaptability, looking closely at what leaders have done in prior periods of volatility, how they handled cost shocks, trade shifts, tariff/rate swings.
• Speed and Quality, because markets change fast, delays in leadership transition cost money. But rushing and mis-hiring costs even more. A search partner that can move with urgency and precision is essential.
• Hybrid / Cross-functional Profiles with people who combine strategic vision, operations execution, cost discipline, and trade/digital fluency. Not just “good in logistics operations,” but who understand financial impact, risk, and regulatory gravity.

 

Recommendations & Takeaways for PE Firms Hiring Executives Now

To make sure your leadership investments pay off, here are some practical steps to take to your talent strategy:

1. Conduct an Executive Gap Audit, Map current leadership skills vs what the environment demands: tariff/trade risk, resilience, niche verticals, operational efficiency, digital fluency.
2. Prioritize Executive Hires in High-Impact Roles. Focus on roles in operations (COO / Portfolio Ops), supply chain strategy, trade/tariffs/compliance, cost/restructuring, and technology/digital execution.
3. Build a Talent Bench & Interim Leadership Options. Don’t wait until you have a crisis. Having interim or “acting” executives who understand this space can smooth transitions or help when change is urgent.
4. Align Incentives for Resilience and Performance. Define what success means: better margin improvement, lower exposure to volatility, trade compliance, ability to maintain revenue in down-turns. Tie compensation and objectives accordingly.
5. Partner with Search Firms Who Understand These Stakes. Look for firms like GESG, which possess domain expertise, the ability to vet for adaptability/resilience, and speed of execution. Make sure the search process includes scenario-based questions (how has a candidate responded to tariff changes or supply chain shocks, for example).

 

In this next chapter of freight, logistics, and supply chain investment, the companies and deals that will win are those anchored by leadership built for instability. For private equity firms, the difference between a good deal and a great one is increasingly determined by who leads the company. This is why talent strategy is so important. It’s not about how cheap you buy it, but how durable your returns are under pressure.

If you’re preparing your next platform add-on, evaluating leadership succession in a portfolio company, or want to ensure that the executive team you hire can deliver operational excellence under duress, we should talk. At GESG, we specialize in identifying and placing leaders in transportation, logistics, and supply chain who combine domain expertise, change management skills, and the ability to perform in turbulent times. Let’s partner to future-proof your leadership, define your talent strategy, and unlock value when it matters most!

GESG is a trusted executive search firm specializing in Transportation, Logistics, and Supply Chain Management. Backed by over 20 years of experience, our recruitment firm delivers proven results through lasting partnerships and a relentless focus on your goals—helping you reduce hiring risks and accelerate business momentum.