Is Private Equity Treasury the Right Path for You?

Published: February 25, 2026

There’s been a recent surge in demand for senior treasury expertise in the private equity setting. Rachael Crocker, Managing Director Europe, for global tax, treasury and senior finance search and recruitment consultancy Brewer Morris, explores what a successful candidate should expect to bring to the role.  

Across Europe, businesses backed by private equity (PE) are scaling rapidly after a period in the doldrums according to McKinsey. This means demand for the treasury skill set within this space has been steadily increasing as PE firms and portfolio companies recognise that treasury is a way to meaningfully impact value creation.

This shift, notes Crocker, aligns with broader industry trends. “PE firms are moving away from pure financial engineering and heading toward operational value creation,  through cost, cash, technology, and talent, with disciplined liquidity and cash management and sustainable growth significant levers.”

Increasingly, due diligence within PE firms is focused on data and insights. Potential buyers are most interested in cash generation, working capital, and liquidity. They raise questions around where it comes from, and how it flows through the organisation. “The ability to demonstrate visibility and efficiencies around this is becoming a non-negotiable,” notes Crocker.

The same but different

Of course, there are a number of goals shared by corporate treasury and PE teams, albeit with some nuanced drivers in the latter. For instance, one of the main treasury aims is to ensure liquidity is in the right place at the right time. But PE firms operate under ultra-tight timelines, with significant capital flowing across private investment structures. While treasury generally ensures liquidity is available when and where it is needed, Crocker points out that timing becomes an imperative in fast‑moving PE deals, fundraising cycles, exit planning, and even initial public offering (IPO) readiness.

Just as liquidity discipline directly influences PE outcomes, so effective risk management by treasury is fundamental to safeguarding returns in PE. Treasury teams bring essential expertise in areas such as FX management, interest rate risk, liquidity risk, and broader financial risk. These activities directly impact cash flow, but more pressure is exerted on them when it comes to meeting all-important PE valuations and overall investment performance.

Cash flow visibility and smarter capital allocation is an enhancement goal for many treasury functions these days. The capacity to provide granular data on cash positions and cash flow forecasts enables sharper decision‑making in areas such as capital allocation, dividend distribution, refinancing, and operational investment. In PE treasury, data accuracy does much of the heavy lifting. “Across portfolio companies, finance and treasury transformation initiatives increasingly emphasise real-time data, process efficiency and the ability to deliver actionable insights,” explains Crocker. “These insights support value-creation plans and more disciplined allocation across PE portfolios.”

All of this means that as the PE industry rapidly rebuilds momentum, skilled treasury is being viewed as offering a competitive advantage. “PE firms focused on operational turnarounds, cost restructuring, and rapid expansion rely heavily on treasury to stabilise financial foundations and unlock liquidity,” states Crocker. Indeed, she adds, industry research shows that treasury plays a central role in supporting M&A activity, working capital improvements, and strategic initiatives across portfolio companies. “And these capabilities are now seen as essential to achieving returns.”

Feel the force

While treasury stock in a PE setting is rising, the extra pressures faced over its corporate counterpart may not appeal to all. “There really are aggressive cash and liquidity expectations,” reveals Crocker. “PE firms also expect cash to be maximised continuously, and treasury is under pressure to maintain near‑perfect visibility of short and long-term cash flows. It is also expected to deliver daily or weekly cash reporting, not monthly.”

The clear aim is to quickly reduce working capital requirements and free up cash. Treasurers will, for example, be encouraged to shorten the CCC by implementing faster collections and slower payments. And in an international context, treasury’s optimisation of trapped cash, intercompany flows, and cash repatriation is another expectancy.

With high leverage the norm in PE-backed companies, treasury must manage tight loan covenants, especially around leverage ratios, interest coverage, and liquidity tests. It must likewise manage pressure around complex interest rate risk arising from floating-rate debt. There will also likely be refinancing pressure under tight timelines or rising-rate environments.

Treasurers keen to explore the PE environment should understand that portfolios often involve structural shifts. “We have recently seen a rise in carve-outs from large corporates due to the tougher terrain, and longer hold-periods in traditional PE, with immature or transitional treasury set-ups,” notes Crocker.

“Where there are bolt-on acquisitions, quick incorporation into cash pools, bank structures, and FX programmes are a must. But the integration of treasury and working capital for these types of businesses can be complex and time consuming – and it can be costly if it’s not done properly and quickly,” she warns

From major to minor

The range of opportunities for a treasurer in PE can vary significantly, depending upon the size and complexity of the organisation, says Crocker. The mandate could be a relatively straightforward implementation of standard treasury processes, such as cashflow forecasting, cash pooling and some automation. But it could just as likely be for the full restructuring of an existing team, with a total overhaul of legacy treasury policies across cash, risk debt, and funding.

While the scope of an individual assignment may be drawn from a broad spectrum of needs, Crocker says one common theme is that PE treasury roles “are almost always focused on improving the visibility and efficiency of cash and liquidity”.

As such, to be successful in treasury within the PE environment, candidates need not only to possess the technical knowledge and ability to recognise best practice but also to understand its appropriate application in each of a wide set of situations.

“While the role will not always be about building a market-leading treasury function, it will often be concerned with finding the quickest route to fit-for-purpose processes, ensuring deal readiness,” explains Crocker. “The capacity to deliver therefore calls for a depth of treasury experience across many different environments, alongside a deep understanding of what works best in each situation.”

The right approach is extremely important in PE, advises Crocker. “Speed and agility are always top of the wish list for portfolio companies. They need dynamic individuals who are able to prioritise, and then deliver, to a high standard within tight timelines.” A hands-on approach is also essential, she adds. “You will be hired for your strategic approach and ability to set the direction for the department, but you will also be expected to roll up your sleeves and get things done.”

Stakeholder management and relationship-building skills are similarly critical. “The PE treasurer needs to be able to forge strong networks across the organisation. But they must also be able to navigate a broad range of stakeholders, be able to identify where treasury can have the biggest impact on group priorities, and then, of course, deliver on those requirements.”

PE kit

While there are obvious similarities between corporate and PE treasury, treasurers seeking employment in the PE world should examine their own capabilities honestly, assessing whether or not there is a good fit.

Crocker suggests the following development areas for treasurers exploring a PE role:

• Round off your experience: The more you have seen and done, the better equipped you are to have an impact in a PE environment.
• Build your network: PE is a small world, and knowing what is happing in similar organisations will help you to have an impact.
• Remain hands-on: Keeping your skill set relevant and up to date is critical when looking to move into PE. It’s essential to be able to pick up tasks and deliver them yourself, in addition to setting the correct direction for the team based on up-to-date knowledge.
• Develop fluency in working-capital optimisation (not just treasury operations): This is an increasingly important area of focus for the PE treasurer, and it’s usually possible to gain exposure to this in your current role.
• Gain experience: This can be a ‘chicken-and-egg’ situation, but once you have experience in a PE portfolio company (PortCo) environment, it becomes easier to build a career in this space. Those who can demonstrate the ability to deliver value may find the fund is keen to move them to other businesses in their portfolio. If not, there will always options in the external market to join other businesses in the same position.