Why PE Portfolio Companies Use Fractional Executives
Private equity-backed businesses have unique needs that make fractional executives particularly valuable. The combination of ambitious growth targets, cost efficiency requirements, and need for experienced operators creates strong demand.
PE Use Cases for Fractional Executives
- Post-acquisition: Immediate senior leadership during transition
- Value creation: Implementing operational improvements
- Gap filling: Covering while recruiting permanent team
- Specialist projects: M&A integration, system implementations
- Exit preparation: Cleaning up finances, processes for sale
Key Fractional Roles for PE
Fractional CFO for PE
- Investor reporting and board packs
- Financial transformation
- Cash management and working capital
- Exit preparation and due diligence
- Add-on acquisition support
Fractional COO for PE
- Operational improvement programmes
- Cost reduction initiatives
- Process standardisation
- Integration of acquisitions
- Scaling operations
Fractional CMO for PE
- Brand consolidation post-merger
- Marketing efficiency improvements
- Digital transformation
- Customer acquisition optimisation
PE Fractional Executive Rates
PE-experienced fractionals command premium rates:
- Fractional CFO: 800-2,000 per day
- Fractional COO: 700-1,500 per day
- Fractional CMO: 600-1,400 per day
What PE Firms Look For
- Previous PE portfolio company experience
- Track record of value creation
- Ability to work with PE operating partners
- Experience with investor reporting
- M&A and integration experience
Finding PE Fractional Opportunities
- Direct relationships with PE firms
- Operating partner networks
- Interim and fractional platforms
- Industry events (BVCA, etc.)