Private Equity Staffing

Why private equity firms should identify leadership risks before a portfolio company has a vacancy

Most executive searches begin when there is already a need.

A CFO resigns. Growth has outpaced the current leadership team. A founder who was right for the business at acquisition may not have the experience needed for the next stage. Or the board realizes that something needs to change.

At that point, the search becomes urgent.

But private equity staffing doesn’t have to begin with an open position.

For private equity firms, looking at leadership needs across the portfolio earlier gives them more time to understand where there may be risk, where the business may need different experience as it grows, and what options are available before a position becomes open.

Here are five questions worth asking.

1. Where Is the Portfolio Most Exposed to Key-Person Risk?

The CEO may be the first person that comes to mind, but key-person risk goes much further than that.

What happens if a portfolio company’s CFO leaves tomorrow? What if the Controller who understands the reporting process better than anyone else resigns? What if a large part of the company’s operations depends on one person?

The CFO, Controller, Head of Sales, COO, and Head of Operations may all create very different problems if they leave unexpectedly.

The point isn’t to have a replacement lined up for every important position. It’s to understand which roles would be the hardest to replace and where the business would be most exposed if something changed.

2. Which Leaders Were Right for the Acquisition, but May Not Be Right for the Next Stage?

This comes up often in founder-led and growing businesses.

Someone who helped a company grow from $30 million to $60 million may have been exactly the right person for that stage. But the experience needed to take that same business from $60 million to $250 million may look very different.

As the company grows, reporting becomes more complex, teams get larger, acquisitions may become part of the plan, and expectations from the board change.

That doesn’t necessarily mean replacing someone.

The current leader may grow with the business, they may need stronger people around them, or the company may eventually need a different leadership profile.

The important part is recognizing that early enough to plan for it.

3. Where Is the Organization Already Showing Signs of a Leadership Gap?

A leadership gap doesn’t always start with an empty position.

Sometimes the signs are already there.

A CFO is spending too much time doing the Controller’s job. Finance isn’t producing reliable information quickly enough. The CEO is still involved in every major operational decision. Growth has moved faster than the management team around it.

Individually, those issues may not seem like a major problem. But they may show that the company needs additional experience or support.

That support doesn’t always have to be a permanent executive hire either. Adding a Controller, strengthening FP&A, or bringing in an experienced contract or interim professional may give the existing leadership team the support it needs.

4. Do We Know Who We Would Call?

If a portfolio company CFO unexpectedly resigns, the usual response is to start calling search firms and figuring out the market.

But that means a lot of important questions are being answered after the need has already become urgent.

What does the market look like? What compensation is competitive? Where are the right candidates coming from? How difficult will the search be? And what happens to the finance function in the meantime?

A relationship with a private equity staffing partner before there is an open position changes that conversation.

Torrey & Gray works with private equity firms and portfolio companies to understand their accounting and finance talent needs, the market, and the type of experience their businesses require. When a need comes up, that understanding is already there.

5. What Leadership Will This Company Need 12 to 24 Months From Now?

The last question looks beyond today’s organizational chart.

Where is the business going over the next 12 to 24 months?

If several acquisitions are part of the investment thesis, does the finance team have experience integrating them? If the business is growing quickly, does the current team have the experience to support that growth? If an exit is getting closer, is the finance function ready for what comes with it?

According to EY’s 2025 Private Equity Exit Readiness Study, 63% of respondents cited a CFO without prior experience selling a business as a top challenge to an efficient sales process.

Those conversations help identify talent needs before they turn into urgent searches.

And sometimes the answer is that the current team is exactly right. Other times, it becomes clear that a new position, additional support, or a different level of experience will eventually be needed.

Either way, knowing earlier gives the business more options.

Final Thoughts

Private equity firms already spend a lot of time thinking ahead about growth, operations, acquisitions, and the eventual exit. Leadership deserves the same attention.

Where is the portfolio most exposed? Which leaders are ready for the next stage? Where are gaps starting to show? Who would you call if something changed tomorrow? And what will the business need a year or two from now?

At Torrey & Gray, we help private equity firms and portfolio companies answer those private equity staffing questions across accounting and finance. We provide permanent, contract, and interim professionals from CFOs and
Controllers to FP&A and other accounting and finance positions.

The next important hire doesn’t always have to start with an open position. Understanding the need earlier puts the business in a much better position when it is time to hire.