The CFO operating partner emerges
As a result of macroeconomic uncertainty and an uptick in supply chain disruptions, deal value has been slow to bounce back. Now, stakeholders are tasked with an increasingly strategic role in value creation as opposed to traditional financial engineering and transaction execution. The end of the ultra‑low interest rates era has profoundly changed the private equity model, and operating partners know it.
Operating partners, once peripheral advisors, now engage from deal origination through exit and are expected to bring, build, and execute an OCFO value creation playbook. Their roles encompass due diligence, strategic planning, operational execution, and governance. They act as embedded transformation leaders, working alongside management to deliver revenue growth, cost optimization, and functional modernization across the portfolio.
This requires stronger alignment between operating partners and portfolio CFOs. CFOs are now being asked to evolve from financial stewards into strategic co-pilots to lead initiatives such as scenario planning, working capital optimization, and data-driven performance tracking with financial insights.
Finding the right leaders for the right roles
Management teams are the linchpin of operational value creation. For private equity firms, the ability to place the right leaders in the right roles is critical to unlocking value. During the due diligence phase, leaders are assessed not only for their technical expertise but also for their ability to drive agility and transformation. For example, a CFO who has successfully scaled a business from A to B may not have the experience or skill set to take it from B to C. In such cases, PE firms often initiate leadership transitions before the deal even closes, ensuring the right talent is in place to execute the value creation plan.
Stage-appropriate leadership is essential. At the outset of an investment, interim or permanent executives with proven PE experience can help navigate transitions, align strategy with goals, and deliver results. As the portfolio company matures, leadership needs shift—from driving top-line growth to focusing on EBITDA performance and operational efficiency. Finally, as the company approaches an exit, leaders with expertise in M&A and exit readiness become critical. This stage-appropriate approach ensures that leadership evolves alongside the company’s growth trajectory.
Agility as a value creation lever
Agility isn’t just a buzzword—it’s a measurable driver of value creation. High-agility companies are twice as likely to report revenue growth and nearly four times as likely to achieve alignment across strategy, talent, and technology, according to Highspring’s Agility Index Report. For low-agility companies, the risks are clear, but so are the opportunities. With the right leaders in place, PE firms can transform these businesses into high-performing assets. Leaders who understand how to foster agility within an organization—by aligning people, processes, and systems—can create scalable, tech-enabled platforms that deliver long-term value.
Highspring’s Agility Index Report also found that high-agility companies are twice as likely to report revenue growth and nearly four times as likely to achieve alignment across strategy, talent, and technology.
