The evolving CFO market and the Deputy-to-Chief dilemma

Executive summary

Anna explores why demand for CFOs in private markets continues to rise while many high-performing Finance Directors still struggle to secure their first step-up. Drawing on Dartmouth Partners’ Finance into Funds network and conversations with newly appointed CFOs, she examines why final hiring decisions often favour prior seat-time, what truly changes when moving from Deputy to Chief, and the capabilities that most clearly signal readiness. The summary outlines the evolving expectations of the modern CFO and offers practical guidance for Finance Directors looking to build strategic authority, investor fluency, and enterprise-wide influence to confidently transition into their first CFO role.

As private markets have matured, with a growth in AUM, strategies and new funds coming to market, demand for CFOs within investment firms has increased. Yet many “step-up” candidates still face surprisingly familiar obstacles when competing for their first CFO role.

Despite balanced shortlists that blend seasoned CFOs with ambitious, high-performing Finance Directors, the final stages still tend to favour those with prior seat-time in the C-suite. At this level, firms are looking beyond technical excellence: they want a CFO who embodies strategic authority, influence across stakeholders, and credibility as the enterprise’s financial leader.

Where the selection process ultimately tilts

Shortlists often start evenly distributed but narrow toward experienced CFOs as decision-making moves from capability to confidence. Boards and investors prioritise candidates who can act decisively under scrutiny, carry the room, and operationalise strategy at pace. 

Demonstrating this in the process requires reframing yourself from a functional expert into a business leader who happens to be a finance professional. For Finance Directors aiming to break through, the challenge is evidencing this readiness in a way that feels tangible and low-risk to decision-makers.

The four faces of the modern CFO

A report by Deloitte* suggests there are four faces to the modern CFO. The question for aspiring CFOs is not whether you can do all four, but whether you can present clear evidence that you are fluent across them and know where to lean in given the firm’s context.

• Steward: Protects assets, manages risk, ensures compliance, and delivers accurate reporting.
• Operator: Runs finance efficiently, leading FP&A, treasury, tax, and core processes.
• Catalyst: Drives execution and change across finance and the enterprise.
• Strategist: Shapes direction, aligns capital to growth, and influences outcomes at the top table.

What shifts in the real world when you become CFO

The Dartmouth Partners’ Finance into Funds team has an extensive network of CFOs operating across the private capital landscape, and in conversations with recent first-time CFOs, we consistently hear the same story: a step-change in scope, agency and exposure. The role expands from functional mastery to holistic enterprise leadership, with greater external intensity and sharper accountability.

A topical illustration of this is the expectation that CFOs will lead on leveraging technology and AI to improve internal processes – thinking not only about how these tools drive the business forward, but also how to manage technology and AI risk post-integration.

To make sense of this shift, it is helpful to break the CFO transition into three dimensions: how the role expands internally, how external responsibilities increase, and how your influence across the organisation must evolve. First-time CFOs often describe feeling “pulled upward” into broader decision-making, while simultaneously needing to “push outward” to build credibility with investors, advisers and the board. It is this multidirectional stretch – across operating stance, external relationships and internal authority – that defines the true leap from Deputy to Chief.

Role breadth and operating stance

This is the first major shift new CFOs feel: the role widens dramatically. You are no longer deep in the details of finance alone – you are expected to operate as a true enterprise leader. That requires a different altitude, a different rhythm, and a more forward-leaning stance across the entire organisation.

• Holistic view: Step back from the ledger to the group-level picture; connect financial vectors with commercial, operational and human capital dynamics.
• Strategic time allocation: Increase time on strategic initiatives; shape, not just support, company strategy.
• Delegation discipline: Own delivery outcomes while empowering the team; build leverage through people and process.
• Navigation mandate: Help the business move from A to B with clarity on trade-offs, timing and risk.

External network and capital relationships

The second shift is external. As CFO, your world expands beyond the four walls of the organisation. Investors, lenders, advisors and regulators become part of your daily landscape – and your credibility with them becomes a critical determinant of your success.

• Investor interface: Deepen involvement with investors and portfolio stakeholders; lead investor relations with credibility and transparency.
• Adviser orchestration: Manage banks, auditors, legal counsel and other external advisers to advance strategic goals.
• Decision accountability: Take ownership of consequential calls, balancing financial prudence with strategic ambition.

Internal branding and influence

Finally, the CFO seat demands a new level of internal presence. At this stage, influence matters as much as insight. You must build trust across the executive team, shape conversations at the top table, and communicate a narrative that aligns finance with the company’s strategic direction.

• Executive trust: Maintain strong relationships with senior partners and the executive committee; be the steady voice in moments of uncertainty.
• Top-table presence: Attend Partner and board meetings where possible; advise with judgment, not just data.
• Enterprise narrative: Articulate a coherent story that aligns finance with growth, risk and culture.

How Finance Directors can bridge the gap to the CFO

In summary, you are unlikely to “win” purely on technical prowess; you need visible leadership impact, an investor-ready narrative, and evidence of strategic decision-making under pressure. If you are a Finance Director aiming for your first CFO role, prioritise strategy, investor fluency, and top-table influence. 

If you are a Finance Director considering your step-up to CFO and would like to discuss your search or get some tailored advice, contact me directly at [email protected].