CFO at Full Tilt > Life in Private Equity

What It Takes to Be a PE-Backed CFO

Having spent over a decade in private equity with Investec Wentworth, I can tell you: the CFO is not just important in a PE deal. They are often the difference between a successful exit and a painful, value-destructive disappointment.

Private equity rewards handsomely. But this isn’t a passive ride.

The days of 200-page board papers, jargon-filled decks, and directors who contribute little beyond ceremonial weight are over. In PE, no one tolerates passengers. If a director isn’t financially literate, proactive, and fast-moving, they’re out. Decisions happen in 30 minutes, not three meetings. Strategy isn’t debated over quarterly offsites—it starts on day one with a 100-day plan, a financial model, and a 3-to-5-year exit clock.

Vocus: Integration vs. Execution

Vocus made dozens of acquisitions under James Spencely, with an integration plan for each from day one. They knew which staff to keep, which premises to close, and how the technology would be absorbed. But after the merger with M2, the playbook fell apart. M2 hadn’t integrated its own businesses and was handed the keys to the combined company. The result? Massive value destruction—confirmed by a $1.5 billion write-down of the M2 business. It was the costliest mistake in Vocus’ history.

James Spencely thought like a PE operator, even without an exit plan. He focused on EBITDA growth and share price. M2’s leadership couldn’t execute at the same pace. It shows: operational precision matters. So does the CFO.

So, What Does It Take to Be a PE CFO?

PE firms build extraordinarily detailed financial models with multiple scenarios. The CFO must not only understand these models but live and breathe them. They must own the model and every lever in it.

Make the Numbers Real — Every Day

There’s a growing trend: private equity firms are struggling to sell portfolio companies at the valuations they expected. Many are being held longer than planned. This reflects a disconnect between modelled optimism and operational reality—often stemming from poor forecasting discipline or failure to stress-test assumptions.

The CFO must track the model daily, weekly, and monthly—not just quarterly. Actuals must be bridged to forecasts in real time. PE firms don’t wait for a board pack to discover an issue—they expect live dashboards, red flags, and responsive action.

Probe Group

When Quadrant backed Probe Group in 2018, the CFO had to manage 10 bolt-on acquisitions within two years. The success hinged on daily cash and working capital tracking, with live performance dashboards informing real-time integration decisions.

Own the Balance Sheet – Top to Bottom

From debt covenants to dividend recaps, the CFO must understand and manage every element of the capital stack. Working capital discipline, cash visibility, and debt structure are non-negotiables in a leveraged PE environment.

Healthscope

In 2019, Brookfield acquired Healthscope for A$4.4 billion. Post-acquisition, they loaded the business with debt and leaseback obligations after selling property assets. By 2025, it collapsed under A$1.6 billion of debt and rising costs. McGrathNicol was appointed receiver. This failure shows what happens when capital stack complexity outpaces operating margin reality.

Be Deal-Ready – Always

In PE, the strategy is often set before the deal closes. Execution begins immediately. This means:

• Cut costs where promised.
• Grow revenue as modelled.
• Track cash weekly.
• Integrate acquisitions on time.
• Hit the EBITDA number—no excuses.

“You don’t need to invent strategy. You need to execute it faster than expected.”

Jon Brett

Quadrant Private Equity

Quadrant, led by Chris Hadley, is renowned for execution speed. They actively partner with management, often replacing CEOs and CFOs to drive performance. In the merger of Freedom Furniture and Amart, Quadrant executed a fast consolidation strategy, targeting a billion-dollar platform with an IPO in mind—all within 18 months.

Hold Your Ground in the Boardroom

PE boards are sharp, direct, and impatient. The CFO must:

• Speak the language: IRRs, MOICs, waterfalls.
• Answer hard questions calmly.
• Influence, without ego.

Lead a Lean, Hands-On Team

The hands-off CFO model is obsolete. PE demands:

• Smaller teams, fewer layers.
• Ownership of treasury, modelling, board packs.
• Scalable systems ready for IPO or trade sale.

Cars24 ANZ

After its PE funding round, the finance team went from 14 to 7 in six months. Reporting became automated, and treasury centralised. The CFO led the ERP integration while modelling multiple exit scenarios.

Build for the Exit from Day One

CFOs must:

• Prepare for exit from day one.
• Lead M&A modelling, diligence, and integration.
• Support vendor due diligence as if preparing for a hostile buyer.

Thrive in the Chaos

Private equity isn’t a steady-state environment. It’s fast, messy, and demanding. The best CFOs don’t just survive constant change—they drive it. Whether it’s restructuring, turnarounds, or systems overhaul, agility is everything.

Silk Laser Clinics (Advent PE)

Silk scaled rapidly via acquisitions, IPO, and then private equity buyout. The CFO had to shift between private, listed, and PE reporting within three years—without missing a beat.

Conclusion: Calm in the Chaos

So, what makes a great PE-backed CFO?

It’s not just technical skill—it’s tempo, precision, resilience, and calm under fire. You’re the one keeping the model alive, the board aligned, and the exit on track.

If that excites you more than it terrifies you, then maybe, just maybe, you’ve got what it takes.

About the Author: Jon Brett

Jon Brett is a Non-Executive Director of Corporate Travel (CTM) and Chair of the Audit and Risk Committee. He also serves as a Non-Executive Director of Raiz Invest (RZI).

Jon is also the author of the very successful podcast  series The Taking of Vocus, chronicling the extraordinary rise of Vocus, what went wrong with the M2 merger, and the eventual privatization of Vocus. The podcast is accessible via his LinkedIn profile Jon’s book The Taking of Vocus, is available on Kindle. Connect with Jon – LinkedIn Profile