Stepping into a CFO role in the private equity (PE) space for the first time can be daunting—even for seasoned finance professionals. As private equity-backed businesses grow in scale and complexity, the CFO role has evolved far beyond financial stewardship. It now demands a rare blend of operational, strategic, and leadership skills, all wrapped into one high-pressured position.
Yet, despite this increasing importance, many PE firms continue to find the CFO role one of the hardest to fill. Part of the challenge lies in the hiring process itself, which can feel like a closed network to outsiders. Candidates without prior private equity (PE) experience often face significant barriers to entry, even when their skills and track record align closely with the role’s requirements. Perhaps it’s time for firms to reconsider how essential direct PE experience truly is—especially when other qualifications are a strong match. It raises an important question: Are PE firms limiting their potential by continually drawing from the same narrow talent pools?
What sets a PE CFO apart?
While many finance leaders are adept at managing the numbers, a successful PE CFO needs to master a very specific playbook. Here are three qualities that typically distinguish a top-performing PE CFO:
- Value creation mindset
In the PE world, the CFO isn’t just a financial steward—they’re a key player in driving enterprise value. According to EY’s Five Stages of Private Equity CFO Value Creation, CFOs must guide the business through rapid transformations, often under tight timelines. Their ability to identify operational inefficiencies and implement performance improvements is critical to the investment thesis. - Strategic agility coupled with operational grit
PE-backed companies are frequently in flux—scaling rapidly, restructuring, or preparing for exit. A PE CFO must switch gears quickly between high-level strategy and hands-on execution. This duality is often what separates the good from the great. - Stakeholder management in high-stakes environments
From managing demanding PE sponsors to leading change within the portfolio company, a CFO must be an exceptional communicator and influencer. They need the credibility to challenge CEOs constructively while aligning with board-level expectations.
Why PE firms struggle to hire the right CFO
Many PE firms struggle to hire the right CFO because they rely too heavily on past PE experience, assuming that success in one deal or fund translates easily to another. However, this often leads to safe but uninspired hires—leaders who tick the box but don’t necessarily bring innovation or dynamism.
This tendency creates a cycle: firms gravitate toward a narrow candidate set, reducing diversity of thought and missing out on up-and-coming talent with fresh ideas and modern skillsets. Failing to break this pattern can trap firms in a “cul-de-sac of mediocrity,” as hiring remains stuck in risk-averse habits.
How can PE firms broaden the CFO talent pool?
To build a future-ready finance function, PE firms need to take a more open-minded and structured approach to hiring:
- Assess potential, not just pedigree
A CFO with high-growth business experience, strategic transformation skills, or tech-enabled finance acumen may offer more long-term value than one who has simply “done a PE deal before.” - Invest in emerging leaders
While experience is valuable, preparing the next generation of CFOs from within or adjacent sectors can yield higher returns. Mid-career finance leaders with the right mindset and exposure to change environments can often thrive in PE, given the right support. - Diversify the search process
Widen the net beyond traditional PE hiring networks and engage partners who understand both finance and cultural fit. This increases the likelihood of finding candidates who bring both capability and chemistry to the table.
A golden opportunity awaits
The CFO role in private equity is evolving fast—so PE firms need to approach their hiring in a similar, flexible and creative way. While the traditional closed-network model may feel safe, it often leaves value on the table. By redefining what “the right experience” looks like and opening up to a wider array of talent, PE firms can unlock stronger leadership, smarter value creation, and ultimately, better exits.
Rather than viewing the CFO hiring process as a risk, the firms willing to break the mould may discover it’s actually a golden opportunity in disguise.
At the Siena Partnership, we work with our clients to recruit private equity CFOs and help their organisations innovate and deliver business success. If you’d like to continue the conversation with one of our Finance hiring experts, Jake Bush, contact him here: Jake Bush