8APRIL 2023OPINIONIN MYPrivate equity (PE) and venture capital (VC) firms are management companies or firms in their own right that need a chief financial officer (CFO) to run their operations. They have staff reporting to management and investors on a regular cadence, and they fall under regulatory scrutiny just like their public company counterparts, depending on their size and strategy. With the continued growth in the industry, there are more and more funds that need this operational infrastructure ­ and the CFO is the chief architect.The role of the CFO in PE and VC firms has seen significant evolution over the past couple of decades and looks set to continue to develop as investors, regulators, and other stakeholders demand increasing levels of transparency around fund performance, valuations, due diligence, and compliance. As such, the role of the CFOs becomes even more strategic as it involves client-facing responsibilities regarding the direction and performance of the firm, the fund itself, the management company, and its investment portfolio companies. These CFOs' skills in terms of knowledge and experience in firm strategy, valuations, structuring finance operations, and finding efficiencies are highly appreciated.Over the past years, back office functions are expanding in their importance: Investors (Limited Partners, or LPs), regulators, and PRIVATE FUND CFOs TURN TO OUTSOURCING: A NEW-ISH FRONTIERBy Kwame Lewis, Head of Product Innovation, Fund Services, TMF GroupKwame Lewis
< Page 7 | Page 9 >