The Value Multiplier: Why Private Equity's Best CEO-OP Partnerships Start with the Right CFO

CFOs are no longer just financial stewards. Today, they are the driving force behind strategic growth and value creation.

More than ever, CFOs are expected to drive M&A execution, optimize value creation plans, and serve as key advisors to CEOs and Operating Partners (OP). With high valuations and intense competition shaping investment strategies, firms that secure the right CFO talent – and cultivate a strong CFO-CEO-OP partnership – gain a critical edge.

Let’s address the critical questions that define private equity success – those that shape leadership decisions, accelerate value creation, and distinguish top-performing portfolio companies from the rest:

• What defines an exception PE CFO?
• How do I attract and assess elite financial leadership?
• Can I align my CFO recruitment and investment strategies to maximize returns?
• What is the CFO-CEO-OP matrix recipe for success?

Critical attributes of a brilliant PE CFO

M&A mastery: Given high valuations and intense competition, firms must rely on M&A strategies and organic growth to create returns. CFOs need expertise in deal structuring, due diligence, integration planning, and working closely with lenders and bankers to maximize synergies.

Speed & agility: CFOs must operate at private equity pace - quickly assessing opportunities, adapting to market shifts, and executing value creation plans with precision.

Business leadership & influence: Beyond financial acumen, CFOs must serve as trusted advisors to the CEO and key decision-makers, influencing strategy and aligning the organization toward common objectives.

Deep operational insight: While prior PE experience and industry expertise are beneficial, the most successful CFOs are those who fully grasp the company’s revenue model, operational KPIs, and strategic priorities.

Securing top-tier CFO talent

Identifying and attracting the right CFO requires early alignment on the ideal candidate profile.

Build a scorecard: A structured framework detailing the CFO’s mission, expected outcomes, and required competencies ensures all stakeholders - especially the CEO - are aligned before the search begins.

Expand the talent pool: While Big Four backgrounds are valuable, firms should also consider candidates from investment banking, corporate development, strategy consulting, and operational leadership roles.

Build a talent pipeline: Maintaining a roster of pre-vetted CFO candidates allows firms to move quickly when a transition is necessary, ensuring no momentum is lost post-close.

Leverage diagnostic tools & assessments: Beyond traditional interviews, firms can use case studies and financial modeling exercises to gauge a candidate’s ability to solve problems under real-world conditions.

Assess fit for the investment horizon: Rather than focusing on whether a candidate is generically “good” or “bad,” the key question is: Can this CFO take us where we need to go during the hold period? Alignment with the firm’s investment strategy and transformation goals is critical.

Align the CFO search with deal signing: Ideally, the CFO search should be complete - or nearly complete - by the time a deal closes, setting the company up for immediate progress.

Strengthening the CFO-CEO-OP relationship

For a portfolio company to reach its full potential, a strong, transparent relationship between the CFO, CEO, and OP is essential.

Early and ongoing communication: From the outset, ensure the CFO understands the value creation plan and how their role fits within it. OPs should set clear expectations about where the CFO should focus their time and priorities.

Operating partners as strategic interpreters: OPs should act as a bridge between the CFO, CEO, and Board - removing friction, facilitating alignment, and leveraging their portfolio-wide expertise to accelerate solutions.

Prioritize cultural fit and relationship building: The CEO-CFO relationship must extend beyond reporting lines. Informal interactions, such as dinners, offsite meetings, and personal conversations, can provide critical insights into how well a CFO fits within the leadership team.

Final thoughts

A high-performing CFO is a linchpin in private equity success. By prioritizing strategic CFO recruitment, fostering a seamless CFO-CEO-OP partnership, and ensuring alignment from day one, firms can accelerate value creation and drive superior investment outcomes.

As portfolio operations become increasingly complex, the ability to identify and empower top-tier CFOs will remain a critical differentiator in achieving sustained private equity success.