I am looking into a Chief transformation officer role in a PE Portco ($2-3B). I am a tenured MBB partner, things are going well, but I am wondering should I explore. Anyone experienced here who can share trade offs and comp trajectory?

likesmarthelpful
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Third question is, “what happens when the transformation is over?”

likesmartfunny

That’s the beauty of transformation- it’s never really over

likefunny

First question to ask is "what's the current size of my team?" Second question is "what's my budget, both for hiring and external vendors?".

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I have known people who have done this. If you are good and execute well there are always options afterwards: take exec role at the company, similar role at another of their portcos, go in house to the PE firm, return to consulting with one more strong PE relationship. If things don’t go well and the transformation is important for them, they will move on from you and you need to use your relationships to find a landing spot. The real question is - if things are going well for you, what is the motivation to do this? There could be some valid reasons, but hard to evaluate without you indicating why you would want this opp vs. current role.

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I think This is probably the right way. I think the other thing to interrogate is honestly whether the PE firm and portco are aligned about what this role actually does. Sometimes there’s meat on the bones to the role, real leverage, and the ability to drive substantial value. Other times it’s a glorified PMO (doing one of these right now for a client and this is exhausting).

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I took this route and love it - biggest advice I can give is ensure there is alignment between the PE Fund and PortCo (both for role and overall) because that is the most significant factor that determines how your experience will be

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And how/where are your costs (comp, benefits, bonus, carry) funded? Are you an operating expense for the portco or the fund?

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Are you me and are we looking at the same role 🤣🤣🤣

No. NA

Thank you all! Very helpful.

Honestly motivation is around 3 things
1) explore moving into a P&L role to drive real impact.
2) Been in consulting for over a decade now, and wondering if I need a step change
3) hope that this might help me spend more time with kids in the near term ( at the expense of cash comp), with higher upside if do well in the long term (Portco CXO)

Having said that I will be SP in 2-3 years. Things are going very well. So sometimes I also wonder whether I am taking unnecessary risk

My two cents…you live once…go for the path unknown and enjoy the ride / new experience. Don’t look back and second guess. I’m about to embark on a new journey myself. Felt it was time for a new and less predictable chapter.

helpful

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