In Private Equity, the CFO isn’t the CEO’s “Right Hand.” They are the CEO’s “Governor.” The relationship between a PE-backed CEO and CFO is the most intense "marriage" in business. It’s a high-pressure partnership where the stakes are measured in multiples, not just milestones. The CEO is the Accelerator. They are wired for growth. They want speed. They want the vision. They see the horizon. The CFO has to be the Brakes. Not to stop the car - but to ensure it doesn't fly off the cliff at 120 mph. The biggest mistake finance leaders can make in PE is trying to be "liked" by the CEO. In a portco, you aren't paid to be liked. You’re paid to be the Source of Truth. That means: Saying "No" to the "strategic" acquisition that kills the cash flow. Calling out a sales forecast built on "hope" rather than "pipeline." Being the only person in the room who cares more about the Multiple than the Ego. The best PE CEOs don’t actually want a "Yes Man." They want a "Truth Man." They need someone who can sit them down and say: "I love the vision, but we don't have the working capital to survive it. Here is the path that actually works." It’s a lonely spot to be in. It’s uncomfortable. It’s full of friction. But in the world of leveraged buyouts, that friction is exactly what creates the heat, and the value. If you’re a CFO and you haven't had a "heated" debate with your CEO this month, you might not be doing your job. You’re just a passenger. Finance Leaders: How do you balance being a "partner" to the CEO while remaining the "guardian" of the investment? CEOs: What do you actually want from your CFO when the pressure is on? #PrivateEquity #CFO #Leadership #ValueCreation #Portco
Hi Mark, it all starts from the governance. In PE world in the majority of the cases hiring and firing of the CFO stays with the PE not the CEO. In "Big Corp" in the majority of the cases hiring and firing of CFO stays with CEO and this is why many CFO that comes from Corporate fails in PE beacuse they come with a mindset from Corp that they need to please the CEO... In my view it is quite simple the CFO to do well is job need to make the CEO "succesfull" and not necesserely "happy", wich of course entails saying no to disruptive deals, wrong strategies , go against some big ego and so on..an attitude and work etics that can be limiting career in Big Corp sometimes but long terms it pays off...and ther's should be no compromise with that. My take...Regards Pietro
Rob Sayre
3w
Well said. The most effective CEO-CFO partnerships create productive tension. I look for a CFO who pressure-tests assumptions, highlights blind spots, and challenges the path to value creation while staying aligned to the strategic objective. The debate happens behind closed doors. Alignment happens in the boardroom. That balance strengthens both decisions and credibility.
Rick Smith
3w
The truth is that there is a triangle of governance between the PE investors, the CEO, and the CFO, but the triangle is skewed, with the CFO sitting in the weakest corner of the triangle. The CFO has to do their best to manage and balance the needs of the PE investors with the goals of the CEO, while also trying to manage the complex personalities that exist within the triangle. Certainly not an easy task, particularly if the CEO was also the original founder of the business! That being said, all the CFO can do is: (1.) Do great work -- duh, right?, (2.) Do their best to build positive, trusting relationships and build up some personal equity with everyone involved, and (3.) Always operate with integrity and honesty, even at moments where it's hard to be honest about what the trajectory truly is ... what I'm saying is, "Saying what's uncomfortable to say but someone has to say it."
Rob Sayre What have you found to be a good balance of value creation with developing your backend accounting and finance teams? Do you sometimes feel there can be a challenge in navigating th visionary side of what you want to see vs the reality and cost of complexity good accounting and financial analysis is? Will be amazing to see the complexity gap bridge as we onboard more AI solutions into erp and AGI agents.
Yes Mark Jansen. I’d just nuance one thing: it’s not the heat that matters, it’s the price of disagreement. In some portcos, “pushing back” doesn’t just create discomfort, it creates career risk. That’s when truth gets delayed, and the board learns late. CFO churn is often a symptom of that dynamic, not the root cause. The CFO also sits in the middle of the CEO–investor relationship, taking pressure from both sides and managing conflicting loyalties. The best CEO–CFO pairs make it safe to be the messenger and explicit about the decision rule when speed and cash disagree. That’s when friction becomes execution.
I think of the role as partner on direction, guardian on discipline. Being a true partner to the CEO means leaning in early—helping shape strategy, pressure-testing assumptions, and translating vision into executable financial plans. But partnership doesn’t mean agreement by default. My value is highest when I’m willing to challenge ideas constructively and bring data, risk framing, and scenario thinking into the conversation. At the same time, being the guardian of the investment requires clarity on where the lines are. I’m responsible for capital stewardship, controls, and long-term value creation, even when short-term opportunities are tempting. The balance comes from alignment up front: shared goals, clear decision rights, and mutual trust. When the CEO knows I’m fully committed to winning and to protecting the enterprise, tough conversations become collaborative rather than adversarial. The best CFO-CEO relationships aren’t about saying yes or no—they’re about getting to the right answer together.
Jon Bostock
3w
Great read. Maxwell Salazar is working on a profile on how I work with my CFO. The most important variable to me is “trust in vision” but Anthony DiCataldo will have to chime in.
Very true. Thank you for laying down these thoughts! PE-backed companies have very specific dynamics. Business growth is a priority, but it comes with a very high level of financial control, risk aversion, and strong pressure for fast results. It's not always easy for a CFO to navigate this kind of environment because the interests of the CEO and the rest of the Board may be very different. Great school of social skills!
Having successfully completed 6 turnarounds, this really hits home. In a PE-backed business, I don’t need a CFO to agree with me. I need them to keep me grounded in reality. The best CFOs I’ve worked with are comfortable pushing back, calling out optimism disguised as forecasts, and saying the hard thing early … not later. When the pressure is on, what I want is simple: Tell me what’s real. Tell me straight. Then help me find the path that actually works. Healthy tension is part of the job. Avoiding it isn’t.