The Role of an Interim CEO in Private Equity and Venture Capital-Backed Firms

Interim CEOs in PE and VC-backed firms don’t have the luxury of time. There’s no six-month honeymoon period to ease into the role. Instead, they must rapidly assess the business, take decisive action, and create momentum—often under the intense scrutiny of investors who expect results.

Why Appoint an Interim CEO?

Private equity and venture-backed firms operate in high-pressure environments where leadership gaps can quickly erode value. Unlike a traditional CEO hire, which can take months, an interim CEO provides immediate stability, bringing clarity and execution to the business. They are particularly useful in situations where decisive action is required but a long-term leadership commitment isn’t yet viable.

Often, the decision to appoint an interim CEO isn’t just about a leadership vacancy—it’s about the urgency to change direction. If the existing CEO is failing to make the necessary shifts in strategy, allowing problems to fester, or moving too slowly while cash runway shortens, investors cannot afford to wait. Hesitation in these environments is costly, and an interim CEO is brought in to act where others have not.

Common scenarios where an interim CEO is the right solution:

• Leadership Vacuum – The CEO has suddenly departed, and a swift, experienced hand is needed to prevent instability.

• Underperformance & Stagnation – The business isn’t meeting investor expectations, and the CEO is unwilling or unable to make the tough calls needed to turn things around.

• Scaling Challenges – A high-growth business has reached an inflection point and needs a leader who can professionalise operations and manage complexity.

• Exit Readiness – The business is preparing for sale or IPO, and investors need a CEO who can sharpen performance and drive the final phase.

• Crisis Management – Whether due to financial distress, operational breakdown, or external shocks, an interim CEO can take control, stabilise the business, and set it on the right path.

• Deteriorating Cash Position – When the company is burning cash too quickly and decisive financial and operational adjustments are needed to extend runway and regain investor confidence.

• Organisational Change & Reset – The business needs restructuring, cultural realignment, or operational clean-up before a permanent CEO is identified. An experienced change leader can “tidy up” the organisation with minimal fuss—settling the team, making positive changes that improve rather than disrupt, and ensuring a stable foundation for long-term leadership.

The Immediate Priorities of an Interim CEO

1. Rapid Business Assessment – Within days, they must grasp the financial position, operational challenges, and strategic gaps. There’s no indulgence in lengthy handovers.

2. Engaging the Team – Teams often operate in a state of uncertainty when a leadership change occurs. A strong interim CEO settles the team quickly, earning trust through action, not rhetoric.

3. Stakeholder Management – Whether it’s investors, lenders, customers, or suppliers, confidence must be restored fast. Stakeholders need clarity on the plan and reassurance that the business is in competent hands.

4. Operational and Financial Reset – Underlying inefficiencies, cash pressures, or a lack of commercial focus must be addressed immediately. The right interim CEO will challenge assumptions, strip away non-essential initiatives, and double down on what drives value.

5. Setting the Course – Whether the objective is stabilisation, turnaround, growth acceleration, or preparing for exit, a defined roadmap must be in place within weeks, not months.

The Distinct Advantage of an Interim CEO

A key advantage of an interim CEO is their ability to make hard decisions without the constraints of internal politics or career preservation. However, making difficult decisions does not mean being ruthless. In fact, the best interim CEOs understand that change must be handled with skill, professionalism, and respect for the people involved.

Too often, businesses delay change because they fear the disruption it may cause. Portfolio managers and investors take time before making a move, and when they do, they need absolute confidence that their interim CEO will create positive impact without causing unnecessary damage. Leadership transitions are high-stakes moments, and getting it wrong can fracture a business rather than fix it.

This is where experience makes all the difference. It’s not just about having the ability to act—it’s about knowing how to act. Tough things need to happen, but they must be handled with precision, care, and a deep understanding of how to bring people along through change. Effective interim CEOs settle businesses quickly, make positive shifts that strengthen rather than destabilise, and implement necessary improvements without creating unnecessary upheaval.

Personally, I pride myself on the number of strong, friendly relationships I still have from previous assignments, even in situations where I’ve had to make difficult decisions. Change doesn’t have to leave scars. When done right, it builds trust and positions the business for long-term success. There is absolutely no need to be ruthless—only deliberate, professional, and highly competent.

A key advantage of an interim CEO is their ability to make hard decisions without the constraints of internal politics or career preservation. They don’t need to be liked; they need to be effective. A strong interim leader can make tough calls, remove barriers, and align teams towards action without getting bogged down in the emotional weight that often paralyses decision-making.

Another major distinction is their ability to move at speed. Too often, permanent CEOs feel pressured to build consensus before making changes. An interim CEO has the mandate to act first and justify later—provided they deliver results.

How Portfolio Managers Should Approach Appointing an Interim CEO

Appointing an interim CEO is a significant decision, but it needn’t be seen as a high-risk move. In fact, delaying action is often the riskier option. A good interim CEO doesn’t add disruption—they settle a business quickly, bring immediate clarity, and ensure the organisation moves forward with confidence. For an experienced CEO, this isn’t a daunting or dramatic intervention—it’s business as usual. Personally, within an hour of arriving on the ground, the business is settled, and work begins.

Steps to take when considering an interim CEO:

1. Clarify the Core Objective – Not every interim appointment is about transformation. Sometimes, the priority is stability—keeping things on track while allowing time and space for a proper CEO search. Other times, intervention is needed to restore performance, refocus commercial priorities, or restructure operations. Defining the key goal ensures the right fit.

2. Define the Interim’s Mandate – Whether the interim is there to maintain stability or drive change, they need a clear remit. Should they focus on team alignment, investor confidence, operational improvements, or financial controls? Even when holding the fort, a good interim CEO brings efficiency and clarity.

3. Move Quickly, But Sensibly – The longer uncertainty lingers, the more difficult things become. That said, choosing the right interim CEO matters. The best interims settle teams fast, restore confidence, and create immediate momentum. The right appointment means the business benefits from progress within days, not months.

4. Ensure Leadership & Cultural Fit – Portfolio managers often (rightly) want to avoid unnecessary friction. A strong interim CEO doesn’t create waves for the sake of it—they lead with confidence, make necessary changes professionally, and maintain internal relationships. In many cases, teams appreciate the fresh perspective and structure a seasoned interim brings.

5. Establish a Clear Transition Plan – Whether the interim is a bridge to a permanent CEO or leading a defined period of change, having a view of the next steps avoids unnecessary uncertainty. Some interims are best suited for short-term stabilisation, while others may lay the groundwork for a long-term transition. Understanding this upfront helps set expectations.

The Interim vs. Permanent CEO – A Different Skill Set

The role of an interim CEO is fundamentally different from that of a full-time CEO, and the skills required are not the same. Leading through a period of uncertainty and change demands a very different mindset—not only for the interim but also in how they lead the people in the business.

An interim CEO steps into a business that is often unsettled. There may be leadership gaps, financial challenges, operational inefficiencies, or simply a need for stabilisation before a long-term leader takes over. Unlike a permanent CEO, who typically has the time to build long-term strategies, an interim CEO must make an immediate impact—balancing the urgency of change with the need to keep the business running smoothly.

This is where experience matters. A seasoned interim knows how to bring clarity, reassure teams, and take decisive action without unnecessary disruption. They must engage people in a way that instils confidence, ensuring that changes—whether operational, cultural, or strategic—are implemented effectively and with minimal resistance.

Crucially, the mindset of an interim CEO is action-oriented and outcome-driven, rather than career-focused or politically motivated. The best interims don’t seek to entrench themselves in an organisation—they focus on achieving results and leaving the business in a better place for the next leader to take over. This ability to lead decisively, yet with care, is what separates true professional interims from those merely looking for their next permanent role.

Avoiding the Wrong Interim Appointment

Not all interim CEOs are cut out for private equity and venture-backed firms. Some are career placeholders, seeking an easy landing before retirement. Others approach the role like consultants—diagnosing endlessly without taking real action. What’s needed is someone who treats the role as if they have skin in the game, because in many ways, they do. Reputation in the interim world is built on impact, not tenure.

One of the biggest mistakes portfolio managers can make is hiring someone who is not truly committed to interim work. I come across many individuals who think they can “do a bit of interim” while they look for a permanent role. While everyone has to start somewhere—I did too—it’s critical to avoid someone who is simply freelancing while waiting for their next full-time position. These individuals lack the mindset required to be fully invested in the business, and their focus is often elsewhere.

Personally, I treat every assignment as if it were my permanent home. In many cases, it’s actually quite difficult to walk away when my work is done because of the strong relationships I build along the way. But that’s the nature of being a professional interim—it’s about delivering real impact, knowing when to step back, and leaving the business in a far better position. I love what I do, and I never see interim work as a stepping stone to something else. The clarity, action-orientation, and momentum of the role suit me perfectly, and my only priority is delivering results for the business.

Not all interim CEOs are cut out for private equity and venture-backed firms. Some are career placeholders, seeking an easy landing before retirement. Others approach the role like consultants—diagnosing endlessly without taking real action. What’s needed is someone who treats the role as if they have skin in the game, because in many ways, they do. Reputation in the interim world is built on impact, not tenure.

When to Appoint an Interim CEO

Bringing in an interim CEO makes sense when:

• The current CEO has been removed, and a permanent replacement will take time to secure.

• Performance has stalled, and immediate intervention is required to protect value.

• A high-growth business needs experienced leadership to scale successfully before a full-time appointment is viable.

• A business is preparing for an exit, and a results-driven leader is needed to steer the final phase.

Final Thoughts

Interim CEOs thrive in the high-stakes environments of private equity and venture-backed firms because they bring experience, objectivity, and a laser focus on outcomes. They stabilise, restructure, and unlock value at pace.

If you’re facing leadership uncertainty, the right interim CEO won’t just fill a gap—they’ll deliver a material shift in performance, setting the business on a stronger path forward.

About the Author

Trevor is a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management, is a respected C-Suite leader and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.