By Mirek Gruna, Regional CCO, UK, Ireland and Crown Dependencies
The roles of chief financial officers (CFOs) and chief operating officers (COOs) are increasingly shifting towards the front office, focusing on supporting client financials and investment strategy. How will they continue to evolve in 2025 and beyond?
I had the privilege of moderating a panel that addressed this very question at the LPGP Connect CFO/COO conference on 24 June. When the organisers approached me to lead this panel, I did not hesitate, as I see these changes firsthand through my interactions with many CFOs.
Together with the panellists Elisabetta Ricci, Partner and COO at Stirling Square Capital Partners, John Rowland, Partner, COO and CFO at Alchemy Partners, John Joseph, Head of Legal, Compliance and Risk at ACE & Company, and Sam Cole, Managing Director, EMEA Fund Solutions at Kroll Advisory, we discussed how these roles will be further transformed this year and in the years ahead, especially in a time where geopolitical uncertainty, macroeconomic challenges, and the advancement of technology and AI are completely changing the landscape.
We agreed that the sector needs a new skill set and that adaptability and resilience are qualities becoming more crucial than ever in the private markets world.
Establishing credibility in new areas
The panellists discussed how, in line with the growing complexity of the industry, the COO and CFO mandates are ever increasing, with areas of responsibility ranging from highly strategic considerations/issues to day-to-day operations. Because the roles have oversight across so many aspects in the firm, the COO and CFO become the natural candidates to integrate areas such as talent and sustainability within the broader firm’s strategic agenda.
That being said, in a fast-moving and complex environment like private equity, credibility doesn’t come from being the expert in every area. It comes from knowing how to build and empower teams of high-calibre people across HR, Legal, Risk, Compliance, Finance, and Technology. Creating the right structure for these subject-matter experts to surface issues and insights early, particularly in areas where risks are less visible (such as culture, retention, or certain regulatory aspects) is essential.
Revolutionising the role with technology and data
“Technology won’t just improve what we do; it will fundamentally reshape the way we operate, make decisions, and interact with stakeholders. The real challenge isn’t whether change is coming, but how far ahead of the curve you’re willing and able to be,” said John Joseph. Those who wait for perfect clarity will already be behind.
The panellists mentioned the fact we now have better access to and greater processing power for data than ever before. However, as AI expands into our day-to-day toolkit, it’s important to maintain a critical thinking culture in relation to decision-making. Sam Cole mentioned an MIT study that evidenced “cognitive debt” in AI users (where outsourcing mental effort weakens learning and thinking) as well as a reduction in task ownership, which may impact team environments.
When to bring in external consultants
As we advance further along the technology and AI spectrum, and areas become more nuanced and the pace of information increases, it’s important to know when to call on temporary and ad hoc assistance to maintain an informed decision-making process. Establishing a group of trusted and specialist advisors is crucial, especially for small to mid-sized managers who do not have the platform to employ specialists across all areas. These support services offer market insights from peers, tailored solutions, and with the right providers, they can operate seamlessly as an extension of your business.
Amid the change, some things remain constant
The CFO and COO roles are expanding, not simply through an increase in tasks, but because they’re expected to take on more responsibility across the firm. It’s no longer just about keeping the engine running; it’s about redesigning the engine while driving at full speed.
What won’t change is the importance of people and human interaction. Technology can help with reporting, but it will never replace trust. Our panellists agreed that you don’t build confidence through dashboards alone; you build it by showing up, by listening, by having honest conversations. A fund pitch delivered in person, a walk through a portfolio company, a quiet one-on-one with an investor – these are the moments that build real partnerships. In our industry, performance matters but relationships are everything.
In conclusion
The LPGP Connect conference underscored the evolving roles of CFOs and COOs in the private markets. As these roles expand and shift towards the front office, the honing of new skills, adaptability and resilience is crucial.
Technology and AI, along with geopolitical and macroeconomic challenges, will continue to reshape operations. Leveraging this technology, building credibility and knowing when to bring in external consultants are key strategies, with trust and human interaction remaining vital through it all.
Ultimately, CFOs and COOs must embrace change, stay ahead of trends, and build strong relationships to drive growth and success in the private markets.
