Gent & Associates

CFO Search for a Private Equity Fund

A middle-market private equity firm managing $800M in assets across multiple funds engaged us to recruit a CFO. The firm needed a financial leader to enhance financial processes, improve LP reporting, and ensure compliance with evolving regulations while supporting the upcoming fundraise.

Client Overview

The client, a private equity firm managing $800M in assets, sought a CFO to oversee fund finance and operations, enhance regulatory compliance, and serve as a strategic partner to the managing partners during a critical growth phase.

Challenges

Complex Financial Environment: Multi-fund structure requiring deep expertise in fund accounting and capital call management.
Regulatory Expertise: Ensuring compliance with SEC and tax regulations for private equity funds.
Fundraising Support: Needed a CFO to instill confidence in potential LPs through robust financial processes.
Strategic Leadership: Required operational insights and contributions to the firm overall strategy.

Strategy

Role Definition: Collaborated with managing partners to define the CFOs responsibilities, emphasizing fund-level operations, LP communication, and strategic insights.
Targeted Candidate Search: Focused on professionals with experience in private equity, venture capital, or real estate fund finance, prioritizing those with CPA qualifications and Big 4 accounting backgrounds.
Screening and Assessment: Evaluated expertise in fund operations, capital calls, distributions, and compliance. Conducted behavioral interviews to ensure the candidate could handle high-pressure demands and foster strong LP relationships.
Placement Timeliness: Delivered a shortlist of qualified candidates within six weeks to align with the firm time-line for its upcoming fundraise.

Outcome

Placement: Hired a CFO with over 15 years of experience in private equity fund finance, including a tenure as CFO for a $1 billion multi-fund platform.
Immediate Impact:
- Implemented a robust fund accounting system, improving reporting accuracy and transparency.
- Established a standardized LP reporting framework, enhancing investor confidence.
- Conducted a compliance gap analysis, addressing key regulatory risks ahead of the fundraise.
Strategic Contributions:
- Played a critical role in the successful close of a $500 million fund, managing due diligence and reassuring LPs with financial insights.
- Reduced audit preparation time by 30% through streamlined financial reporting processes.
- Supported managing partners in evaluating portfolio performance through enhanced analytics and reporting.

Key Takeaways

This case highlights the transformative impact of a strategic CFO in a private equity fund. A CFO with expertise in fund finance and operations can ensure compliance, enhance investor confidence, and contribute to firm-wide growth.