Most interim CFOs at private equity-backed businesses aren’t sticking around for the long haul.
That’s among the findings from a recent survey of interim finance chiefs by recruiting and consulting firm The Barton Partnership.
In a survey of 73 interim CFOs working at private equity-backed companies, just 36% said they moved into a permanent role in some capacity. Another 41% said they didn’t move into a permanent role with their business but would be “open to it in the right circumstances.”
“Permanent transitions are not the default outcome of interim mandates,” the report stated, adding that most respondents “do not approach interim work as a pathway to permanency. Openness to transition is typically conditional on the right scope, timing and broader context of the mandate.”
In an email to CFO.com, BJ Clinton, SVP of consulting solutions, North America at The Barton Partnership, declined to share how many respondents came from each country but noted that the majority were in the U.K. “The skew toward the U.K. is consistent with our firm’s deeper presence and longer-standing interim market in that region,” he said.
Nearly half of the respondents were working in interim CFO roles for five years or more.
Though interim finance chiefs may not be remaining in a permanent capacity, most of the survey participants (84%) said they extended their time with their employer beyond their original contract. Of that subset, 59% said they extended for less than six months, while just 14% extended beyond 12 months.
“This reflects a preference for controlled continuity over fixed timelines — a pragmatic approach to navigating transitions that many organizations outside of PE could apply more deliberately,” Clinton said.
What drives interim finance chiefs to stay on for longer than they originally expected? The report suggests that extensions “used to bridge delivery milestones, to maintain continuity during periods of uncertainty, or to support the asset through transaction or transition phases.”
Interim CFOs in private equity are also apparently looking to build out finance teams that outlast their own temporary tenure. The survey revealed that 80% of respondents said they’ve been hired into the finance function during their time with a PE-backed business. Of that figure, 38% said they brought on permanent hires, 10% hired interim workers and 52% said they hired employees in both categories.
“In some cases, hiring is limited, particularly in smaller portfolio companies or later-stage investments focused on maintaining stability through to exit,” the report stated. “In these environments, interim CFOs operate in a more hands-on capacity within existing team structures. Interim CFO mandates therefore extend beyond oversight of the existing finance function. They are expected to address capability gaps and ensure appropriate financial support at each stage of the investment cycle.”
Clinton noted that interim CFOs’ “professional reputation is built on the quality of what they leave behind, which means the permanent hires they bring in are part of the value they create, not a contradiction of their temporary status.”
Nearly all of the respondents indicated some degree of involvement from their private equity sponsor in their own hiring, with 70% saying the sponsor was “very involved.”
Meanwhile, as for interim CFO pay, Barton Partnership researchers found a wide degree of variability. Among U.S. respondents, the majority of respondents (38%) reported rates between $2,000 and $2,500 per day. Thirteen percent said they had rates surpassing $3,000 per day.
“Day rates for interim CFOs vary materially by mandate scope and complexity, and differ meaningfully across markets,” the report said. “While the drivers of pricing are consistent, the scale of the business, the nature of the mandate and the depth of transformation required, the absolute levels reflect local market dynamics, cost structures and the availability of experienced operators.”
