The Changing Role of the CTO in PE-Backed Consumer Businesses
Insights from Lisa Morgan. Lisa is a principal at Renovata, leading the Product and Technology Practice. She is responsible for recruiting CTO, CPO and their direct reports for venture, growth, and private equity-backed digital and technology businesses. Lisa also serves as the head of delivery for Renovata & Company.
1. How has demand for CTOs in PE-backed businesses evolved recently, particularly in the consumer sector compared to B2B?
The demand for CTOs in private equity has continued to grow. I think there’s a greater appreciation for the impact a strong technologist can have—not just in finance and go-to-market strategies, but across the business. We’ve even seen this reflected within PE funds themselves. While not entirely new, there’s been a noticeable rise in CTO operating partners sitting within funds. They’re not only leading tech due diligence but also helping portfolio companies hire top-tier CTOs and defining what ‘great’ looks like in that role.
More broadly, the increasing sophistication of both B2B and B2C audiences from a tech perspective has elevated the need for strong leadership in these roles. On the B2B side, private equity has always driven consolidation, particularly in software. Over the past few years, we’ve seen significant roll-ups, where the CTO plays a key role in post-acquisition integration, driving transformation, and improving efficiencies. That naturally aligns with the commercial aspects of the business.
In contrast, the B2C landscape has been quieter in recent years. During COVID and its immediate aftermath, there was a surge—marketplace and subscription businesses performed well. But activity has since slowed, largely due to the macroeconomic environment. That said, CTO skills are often transferable. Someone with a background in B2C can transition into the SME market, where many of the dynamics are quite similar. What’s less common is a direct move from consumer-focused businesses into large enterprise—at least not immediately.
2. What unique challenges do PE-backed consumer businesses face that require a different kind of CTO compared to other industries?
One of the biggest challenges is that these businesses—particularly those that have been around for a while—are constantly transforming. There’s always an element of technical debt and legacy technology to manage. At the same time, consumer expectations keep rising. They want more, they want it faster, and they have access to new AI-powered tools that allow them to do more on their own.
The challenge for CTOs is ensuring the business stays competitive and up to date from a technology standpoint while also driving innovation and developing new products. It’s the classic challenge of changing the tires on a moving car—except now, you also need to add a turbo booster just to keep up. That balancing act is critical in the consumer space.
3. What are the most common priorities or requirements for CTO hires in consumer businesses right now?
This isn’t just a consumer-sector trend—we see it across B2B as well. There are the usual priorities: transformation, scaling, and expanding into new geographies. But what stands out most from a search perspective is the cultural change that often accompanies these transitions.
Whether a business is founder-led and going through a leadership shift, or it’s an established company pivoting its strategy, the CTO needs to bring people along on that journey. If a significant portion of the organization is made up of engineering and product teams, they need an empathetic leader—someone who can help them grow, embrace a new direction, and attract top talent.
While there’s always a checklist of experience and technical expertise that PE firms look for, the biggest challenge is often finding the right cultural fit. The ideal candidate needs to align with the company’s culture while also having the credibility and commercial acumen that the private equity investors expect.