Why CTrO Hiring Has Surged & How to Equip Them for Success…

In today’s private equity landscape, where capital is costly, hold periods are lengthening, and exits are increasingly challenging, organic growth alone no longer suffices. Sponsors must drive deep, value-creating transformations to meet their return expectations. 

Enter the Chief Transformation Officer (CTrO): a role that is rapidly gaining prominence across PE-backed companies.

Why CTrOs Are Becoming Essential

Of course, transformation has always been part of the PE playbook, but the pace and complexity of today’s market has elevated the need for specialized leadership. PE firms are now appointing CTrOs in various ways: embedding them directly within portfolio companies, assigning operating partners the title, or asking portfolio executives to take on transformation responsibilities.

Whatever the model, the role is clear: CTrOs are charged with implementing high-impact initiatives that deliver the functional, operational, and financial improvements outlined in the investment thesis. We find they most commonly work alongside management teams to ensure execution while allowing CEOs and CFOs to focus on day-to-day operations.

In many cases, the decision to appoint a CTrO originates as early as the due diligence phase—when PE firms evaluate not only commercial upside, but also organizational readiness and talent gaps. Once onboard, the CTrO is tasked with executing cross-functional, high-impact initiatives, while allowing management to focus on executing core business operations.

The Challenges CTrOs Must Overcome

Hiring of transformation leaders has surged. A global survey by BCG found that companies increasingly appoint CTrOs, with hiring rising by over 140% from 2019 to 2021. Moreover,  following these appointments, companies moved from 6% below to 8% above their industry’s average Total Shareholder Return (TSR) within the first year—and maintained that outperformance thereafter.

The statistics are compelling. According to Exit Up, CTrOs now deliver over 35% of EBITDA uplift in PE-backed companies—nearly double their contribution just a few years ago.

However, even highly skilled CTrOs still face considerable barriers:

• Fragmented data makes tracking KPIs and initiative progress across business units or assets difficult.
• Siloed communication often delays alignment among sponsors, operating partners, and management teams.
• Scaling best practices is inconsistent—what works in one company may not be transferable across the portfolio.

Technology as a Must-Have Enabler

In the past, sponsors often relied on large external consulting firms to drive change programs. While effective, these engagements are costly, rigid, and difficult to sustain across multiple assets.

Today’s CTrOs take a more agile, data-driven approach to achieve value realization, and it’s often purpose-built technology platforms that provide the agility they require, including:

• Centralized data and single-source visibility
• Real-time progress tracking on strategic initiatives
• Early detection of risks and bottlenecks
• Consistent, transparent reporting to all stakeholders
• Codified frameworks and repeatable methodologies across portfolio companies

This technology-driven approach turns transformation from a one-off exercise into a disciplined, measurable process… exactly what PE sponsors need in today’s environment.

The rise of the CTrO reflects a fundamental realignment in PE: transformation is no longer a luxury, but a strategic imperative. With the right systems in place, sponsors can establish repeatable frameworks for driving operational improvement across companies, industries, and investment cycles.

Importantly, these platforms also support a culture of accountability and transparency—critical enablers for driving durable change and meeting value realization goals.

Done right, the CTrO is not just a change agent, they are the connective tissue between strategy and execution. Equipping them with tools that provide real-time visibility, facilitate stakeholder alignment, and track progress against KPIs is best practice.

For those seeking a platform to support transformation efforts, Value Creation Management platforms like Maestro are built specifically to meet this need—giving CTrOs the central hub they require to oversee initiatives, track outcomes, and connect strategy to execution across the portfolio. Get in touch to learn more.