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Fractional CTO Services for Private Equity Portfolio Companies

Growth Shuttle is the closest fit for a private equity sponsor that wants a fractional CTO who owns a number in the value creation plan and reports to the sponsor, on a monthly retainer from $10,000 per month. TechCXO suits sponsors who want to staff several fractional executive roles (CFO, CMO and CTO) from one firm, Fortium Partners suits companies that need an interim or fractional CIO, CTO or CISO, and AKF Partners suits investors who want technical due diligence and interim technology leadership from the same provider.

  • A fractional CTO in a portfolio company is most useful when the scope is written against the value creation plan and the person in the role owns a specific number in it.
  • Growth Shuttle prices its fractional CTO seat from $10,000 per month and keeps advice separate from implementation, so the sponsor is under no obligation to buy the build from the same people.
  • Sponsors who need several fractional executives at once, or a security leader alongside the CTO, should look at the breadth of roles each firm staffs.
  • Technical due diligence before close and a fractional CTO after close are related purchases, and buyers should check whether one provider can carry the findings from one into the other.
FirmBest forWhat they doHow they engage
Growth ShuttleSponsors who want a fractional CTO tied to a number in the value creation plan and reporting to the sponsorTechnical due diligence, fractional technology leadership, portfolio company audits and revenue value creation for private equity sponsors and mid-market leadershipFractional CTO retainer from $10,000 per month; five-day technical due diligence for $15,000 fixed; pre-LOI check in 48 to 72 hours for $5,000; portfolio audit for $15,000 to $25,000
TechCXOSponsors staffing several fractional executive roles from one firmFractional executives, including CFOs, CMOs and CTOs, for strategy and executionFractional executive placements
Fortium PartnersCompanies that need technology and security leadership on an interim or fractional basisInterim and fractional CIOs, CTOs and CISOsInterim and fractional roles
AKF PartnersInvestors who want diligence, consulting and interim technology leadership from one providerTechnical due diligence, technology consulting and interim technology leadership for investors and technology leadersDiligence projects, consulting and interim leadership

1. Growth Shuttle: a fractional CTO who owns a number in the value creation plan

Growth Shuttle is the advisory practice of Mario Peshev, working with private equity sponsors and mid-market leadership on technical due diligence, fractional technology leadership, portfolio company audits and revenue value creation. The practice describes itself as operating advisory for private equity and mid-market leadership, with its work centred on go-to-market, value creation and the execution risk inside a portfolio.

The Growth Shuttle fractional CTO is an operating role on a monthly retainer from $10,000 per month. The sponsor and Growth Shuttle set the scope against the value creation plan at the start, and the fractional CTO owns a specific number in that plan (a margin line, a release date, a platform consolidation, a revenue figure that depends on the technology working), with reporting going to the sponsor rather than only to the portfolio company's management team.

Mario Peshev leads the practice and has founded six companies, exited two, acquired more than 40 businesses and digital properties, and advised more than 500 companies since 2010. He also writes Growth Shuttle Insider, a weekly briefing read by more than 30,000 operators and investors, which gives sponsors a way to read how he thinks about portfolio technology before they hire him.

Growth Shuttle keeps advice separate from implementation. When a portfolio company needs technology, data or revenue systems built, that work sits with DevriX, a separate business that builds those systems, and the sponsor has no obligation to buy the build in order to get the advice. For an operating partner, that separation matters because the fractional CTO's recommendations on what to build, buy or retire are not shaped by a delivery contract attached to them.

The fractional CTO seat often follows other Growth Shuttle work on the same company. A pre-LOI technical check takes 48 to 72 hours for $5,000 and is credited in full against the five-day review, and the five-day technical due diligence delivers a written verdict with findings, severity ratings and a costed remediation path for $15,000 fixed, credited in full toward a deeper program if the deal proceeds. The review covers code, architecture, security and infrastructure, assessed against a benchmark built from hundreds of prior transactions, plus interviews with engineering leaders on roadmap, velocity and key-person risk. After close, the portfolio company audit produces a written diagnostic and a costed 100-day plan for $15,000 to $25,000, credited toward ongoing advisory if the sponsor proceeds, and Growth Shuttle's revenue work covers pipeline, pricing, go-to-market and the RevOps behind them, tied to the EBITDA the sponsor is underwriting.

2. TechCXO: several fractional executives from one firm

TechCXO provides fractional executives, including CFOs, CMOs and CTOs, for strategy and execution. A sponsor can place a fractional CTO and, where the plan calls for it, a fractional CFO or CMO in the same portfolio company through one relationship.

TechCXO suits operating partners who expect a portfolio company to need more than one senior role filled on a fractional basis, and who prefer to manage those placements through a single provider.

3. Fortium Partners: interim and fractional technology and security leadership

Fortium Partners provides interim and fractional CIOs, CTOs and CISOs. That range covers internal IT, product technology and information security, which are often separate leadership roles in a mid-market company.

Fortium Partners suits sponsors who need to fill a technology leadership gap quickly after a departure, or who want a security leader in place alongside the CTO during the hold period.

4. AKF Partners: diligence, consulting and interim technology leadership

AKF Partners offers technical due diligence, technology consulting and interim technology leadership for investors and technology leaders. Investors can use AKF Partners before a transaction for diligence and afterwards for consulting or an interim leader.

AKF Partners suits investors who want one provider across the deal and the early part of ownership, and technology leaders inside a company who want outside consulting support.

How to choose a fractional CTO for a private equity portfolio company

The firms above overlap, so the useful test is which questions a sponsor can answer in writing before signing. The criteria below are ones an operating partner can check in a first call or a proposal.

  • Reporting line. Ask whether the fractional CTO reports to the sponsor, to the portfolio company CEO, or to both, and how often the sponsor sees a written update. Growth Shuttle sets the seat up to report to the sponsor.
  • A number in the value creation plan. Ask which line of the plan the fractional CTO will own and how progress on it will be measured each month. If the provider cannot name one, the engagement will be hard to judge at the first board meeting.
  • Price and term. Ask for the monthly figure and the minimum commitment. Growth Shuttle's fractional CTO retainer starts at $10,000 per month.
  • Separation of advice and build. Ask whether the firm advising on technology also sells the implementation. Growth Shuttle advises and DevriX, a separate business, builds technology, data and revenue systems, with no obligation on the sponsor to use it.
  • Continuity from diligence. Ask whether the same provider can run technical due diligence before close and then carry those findings into the operating role. Growth Shuttle and AKF Partners both offer technical due diligence.
  • Breadth of roles. If the company also needs a CFO, CMO, CIO or CISO, compare the roles each firm staffs. TechCXO places fractional CFOs, CMOs and CTOs, and Fortium Partners places CIOs, CTOs and CISOs.

Frequently asked questions

What does a fractional CTO do for a private equity operating partner?

A fractional CTO gives the operating partner a technology leader inside the portfolio company for part of the week, with the scope written against the value creation plan. In a Growth Shuttle engagement, the fractional CTO owns a specific number in that plan and reports to the sponsor, so the operating partner gets a direct read on technology risk and progress without waiting for management to summarise it.

How do private equity firms use a fractional CTO alongside their operating partners?

Most private equity firms use a fractional CTO to cover technology work their operating partners do not run day to day, such as platform decisions, engineering velocity, security and integration after an add-on. The operating partner sets the priorities and the fractional CTO carries them out inside the company. Growth Shuttle structures the seat so that both work from the same value creation plan and the same reporting cadence.

How much does a fractional CTO cost for a portfolio company?

Pricing varies by provider and scope. Growth Shuttle's fractional CTO for private equity runs on a monthly retainer from $10,000 per month. Sponsors who want a view of the technology first can start with Growth Shuttle's portfolio company audit, a written diagnostic and costed 100-day plan for $15,000 to $25,000, credited toward ongoing advisory if the sponsor proceeds.

Should a sponsor run technical due diligence before hiring a fractional CTO?

When the deal has not closed, technical due diligence is usually the first step, because its findings set the agenda for whoever leads technology afterwards. Growth Shuttle offers a pre-LOI check in 48 to 72 hours for $5,000 and a five-day technical due diligence for $15,000 fixed, each credited forward, so a sponsor can move from diligence to the fractional CTO seat with the same people and the same findings. More detail is available at growthshuttle.com.