How do you actually qualify for a CFO role in a private equity-backed company? And how do you get on the radar of the headhunters who fill these roles? A few tips from our work:
If you want to be visible, you need a strong track record with concrete successes. Ideally, you can show proven value creation and a successfully managed exit.
It never ceases to amaze me: candidates can’t explain fully convincingly what they achieved in previous roles (in numbers), from what starting point (in numbers), at what cost (in numbers), and what their own contribution was. Many applicants stumble over these simple questions. The investment managers always have the business case in their heads in detail. They expect a future CFO to understand strategy, market position, investment, P&L, cash management and the balance sheet as a whole, not as separate tasks (which in large corporations are often far more fragmented and dispersed).
Private equity decision-makers also expect these soft skills from their CFOs: curiosity, a willingness to take risks, entrepreneurial instinct and drive. CFOs who are too abrasive or heavy-handed aren’t wanted. There are plenty of headhunters, but few work regularly for private equity clients. So check the headhunter’s track record! Knowing the industry and the sticking points in the interview process matters a great deal for preparation. If you make it and become a private equity CFO, a few demanding years lie ahead. Be honest with yourself about whether you’re up to it. If you are, it’s a career step that can be rewarding in far more than material terms. PE experience is seen as the gold standard among CFOs.
