When a private equity investor backs a business, the finance function usually feels the change first. The investor wants monthly reporting it can rely on, a cash forecast it can test and a finance lead who can deliver their part of the value creation plan.
Many portfolio companies find their finance team was built for a different kind of ownership. The people are capable, but they haven’t had to report to an investor, refinance, integrate an acquisition or prepare for an exit. That’s why more operating partners and portfolio boards are bringing in interim CFOs, often in the first weeks after a deal.
Deal Activity Is Steady, and Buy-and-Build Is Driving It
UK private equity has stayed active despite a weaker M&A market. RSM UK’s analysis of PitchBook data recorded 797 UK buyouts in the first half of 2026, slightly up on the same period in 2025. Add-on acquisitions rose 11% to 602, while new platform deals fell.
Buy-and-build puts particular pressure on finance. Each add-on brings another set of accounts, systems, people and reporting habits to absorb, often while the business is still adjusting to its new owner.
Why the Finance Function Feels It First
In the months after investment, a portfolio company CFO is typically expected to:
- Produce investor-grade monthly reporting, on time and to a new format
- Build a 13-week cash flow forecast and manage cash tightly
- Report against covenants and manage the relationship with lenders
- Integrate the finance teams and systems of acquired businesses
- Track progress against the value creation plan
- Prepare the numbers and the equity story for an eventual exit
Few finance teams can take all of this on at once while also running the month-end close. Where the existing Finance Director is strong but new to private equity, the gap is experience rather than ability.
Why Interim Rather Than Permanent
Speed in the First 100 Days
The first 100 days set the tone for the whole hold period. A permanent CFO search, followed by a notice period, can mean the role is filled after the most important work should already be done. Experienced interim CFOs often move between assignments, so they can be in place much sooner.
A Mandate Linked to the Value Creation Plan
An interim CFO is appointed to deliver specific outcomes, such as new reporting, a refinancing or the integration of an add-on. That clarity suits investors, who can see what will be delivered and by when.
Experience the Business Hasn’t Needed Before
Many interim CFOs have worked through several private equity cycles. They know what operating partners expect, how lenders think and what due diligence will test at exit.
Time to Get the Permanent Appointment Right
Investment often changes what the permanent CFO role needs to be. An interim gives the board time to define that role properly and run a thorough CFO search, without leaving the finance function exposed in the meantime.
What Investors Look for in an Interim CFO
The strongest interim CFOs for portfolio companies tend to share a few things:
- Recent experience in PE-backed businesses of a similar size
- A record of delivering investor reporting and cash discipline quickly
- Experience of refinancing, acquisitions or exits, depending on the brief
- The judgement to work alongside an existing Finance Director rather than around them
- Credibility with the operating partner, the lender and the management team
Demand for this experience is strong. The Institute of Interim Management’s 2026 survey points to PE-backed value creation projects as a source of strong demand, and average private-sector day rates passed £1,000 for the first time (Stanton House summary of the IIM 2026 survey).
Interim, Fractional or Permanent?
Not every portfolio company needs a full-time interim. Smaller and earlier-stage businesses often need investor-grade reporting and senior oversight a few days a week. In those cases a fractional CFO can provide board-level finance leadership part time, and help the board decide when a full-time appointment makes sense.
We set out the differences in more detail in Interim CFO or Fractional CFO: Which Does Your Business Need?.
Questions for Operating Partners and Portfolio Boards
- What must the finance function deliver in the first 100 days, and can the current team deliver it?
- Is there an add-on, refinancing or exit in the next 12 to 18 months?
- Does the existing Finance Director need support, cover or replacement?
- Would an interim give the board time to define the permanent role properly?
Novo’s Perspective
Private equity moves quickly, and the finance function is usually where that pace is felt first. In our experience, the portfolio companies that perform best don’t wait for a gap to become a problem. They put experienced finance leadership in place early, with a clear mandate tied to the value creation plan.
At Novo Executive, we work with operating partners and portfolio boards to find interim and fractional CFOs who understand investor-backed environments. You can read more about our interim and fractional leadership for PE-backed companies, or meet our interim and fractional specialists.
Matthew Searle
Director
