Behind the Curtain: The Unfiltered Reality of Interim CFOs in Private Equity

When Are Interim CFOs Brought In?

1. Planned Transitions

Some transitions are structured: the CFO may be retiring, or the business has scaled rapidly, and it’s no longer realistic for the same person to lead the next phase. Here an interim can steady the ship, maintain momentum, and create space for a thoughtful long-term hire. These ideal scenarios are rare but valuable when they happen.

2. Distressed replacements

Far more common are reactive appointments - after underperformance, clashes or a CFO deciding they’re not up for the next chapter. These hires are often rushed, starting with vague questions like “Who did we use last time?” rather than a strategic search. Assumptions that a quick replacement will fix underlying issues can backfire. Strong interims are usually in demand, so aligning timing isn’t easy. Outcomes vary and the risk of misalignment is high.

3. Exit Support

Even high-performing CFOs benefit from backup when an exit process accelerates. Managing the day-to-day while preparing for a transaction is a heavy lift. Interim support here isn’t a criticism, it’s extra firepower. Positioning this properly is crucial to avoid undermining the current team.

4. Skill Gaps & Surge Support

Interims are also brought in for scoped projects: NetSuite rollouts, finance team builds or investor readiness. In these cases they’re not replacing the CFO but complementing them. A respectful, targeted approach builds trust and helps permanent hires succeed in high-pressure moments.

Souring Interim CFOs

Interims are sourced through recruiters, personal networks, or increasingly talent platforms. Each route has pros and cons:

Recruiters depend on timing and availability. Political wrangling over suppliers or fees can delay things.
Personal networks offer trusted names but aren’t always scalable or available.
Talent platforms are gaining ground. They offer vetted professionals, reference checks and availability tracking plus a faster, more flexible approach suited to today’s fractional models.

What Makes an Engagement Work?

Clarity from Day One
Alignment on purpose, scope, and expectations is critical. Whether it’s two weeks or twelve months, success starts with clear goals and mutual understanding.
Sponsor Support
Having someone inside the business champion the hire makes a big difference. It helps the interim build trust quickly and navigate internal dynamics.
Structured Onboarding
Simple steps like asking for early observations after two weeks, can reveal blind spots and accelerate progress. Interims often have the distance to voice what others won’t.
Building Trust Fast
With no time to settle in interims must earn trust quickly. Listening actively, delivering quick wins, and understanding the politics and people are all part of the job.

Common Pitfalls

Poor scoping: Rushing to fill a gap without diagnosing the real problem often leads to confusion and misfires.
Weak references: Surface-level endorsements can hide mismatches, especially in high-pressure roles.
Stakeholder misalignment: If the interim’s role isn’t clearly understood (especially by the incumbent CFO) it can cause tension and derail progress. Clear positioning avoids them being seen as a threat and fosters collaboration.
Unrealistic expectations: Big change takes time and backing. Without both, even great interims will struggle.

What Really Matters: Fit Over Titles

Success isn’t about big-brand CVs. It’s about matching experience to the situation. “Step up” candidates - those from fast-growth environments - often do well. They’re used to moving fast, solving problems hands-on, and thinking commercially. Meanwhile, those moving from large corporates to mid-market can bring rigour, but sometimes struggle without structure.

PE and VC experience both have their place. VC-trained CFOs bring agility and discipline. PE requires deeper fluency in cash flow, debt and reinvestment. Labels matter less than mindset.

The First 30 Days: Set the Tone Early

Effective interims move quickly to understand the business: cash position, key risks and where finance processes are helping or holding things back.

Team dynamics need attention early. Some interims assume people issues aren’t their problem, but ignoring tensions or capability gaps can stall progress. Tackling them head-on, even in a temporary role, builds trust and momentum.

Early wins also matter like better reporting, clearer visibility, faster decisions. Many use a flexible 30-day plan, shaped by experience but tailored to the business. The aim isn’t just to keep things running, but to leave the function stronger than they found it.

Exiting Well

A good handover starts early - well before the last day. The best interims document key processes, highlight risks, and offer honest judgement on what’s next. Increasingly they’re using tools like video walkthroughs or shared SOPs to make transitions smoother.

When the incoming CFO is known, a 3–4 week overlap can work well. Some interims remain available post-exit to answer questions and support continuity without overstepping.

Staying Visible Between Projects

Top interims rarely wait for the phone to ring. They stay visible on platforms, nurture relationships, and make time to meet new contacts during live projects. A warm network beats a cold start every time.

Interim CFOs aren’t just seat-fillers. When chosen wisely and supported well, they’re catalysts for clarity, resilience, and growth. They often ask the hard questions no one else will and leave companies sharper and more ready for what’s next.