By Ben Wheaton
Crossing £100M ARR isn’t just a milestone—it’s a moment of strategic inflection. At this stage, technology becomes the fulcrum on which value creation pivots. For PE-backed software companies, the CTO is no longer a functional leader—they’re a strategic operator whose decisions shape scalability, integration, and exit outcomes.
Yet too often, the CTO role is framed in binary terms: the “Scaling CTO” vs. the “Integration CTO.” This oversimplification misses the reality that CTOs operate along a spectrum of capabilities—from platform architects and product strategists to transformation leaders and M&A integrators. The real challenge isn’t choosing between two archetypes; it’s aligning the CTO’s strengths with the investment thesis.
CTO Profiles: A More Nuanced View
1. The Platform CTO
Ideal for product-led growth strategies. They focus on architecture resilience, developer velocity, and embedding AI where it drives margin expansion—not just hype.
2. The Transformation CTO
Suited for legacy-heavy businesses. They lead cloud migrations, modernise tech stacks, and build scalable infrastructure that supports future innovation.
3. The M&A Integration CTO
Critical in buy-and-build plays. They rationalise disparate systems, harmonise cultures, and create a unified tech backbone that supports compounding growth.
4. The Strategic CTO
Often overlooked, this CTO partners closely with the CEO and PE sponsor to translate business strategy into technology execution. They’re fluent in boardroom dynamics and investor expectations.
Why CTOs in PE-Backed Companies Face a Unique Set of Challenges
1. Compressed Timelines
PE ownership often comes with a 3–5 year investment horizon. CTOs must deliver transformation, scalability, or integration at portfolio pace—not product pace. This means executing multi-year roadmaps in months, often while managing legacy systems.
2. Dual Accountability
CTOs must balance operational leadership with investor-facing communication. They’re expected to translate technical complexity into commercial clarity—whether in board meetings, diligence sessions, or exit prep.
3. Inherited Technical Debt
Many PE-backed platforms are built through acquisition. CTOs inherit fragmented architectures, inconsistent tooling, and legacy codebases that weren’t designed to scale or integrate. Rationalising these without disrupting customer experience is a high-wire act.
4. Talent Constraints
Hiring top-tier engineering leadership is hard enough. Doing so under budget constraints, in secondary markets, and with limited brand equity adds another layer of difficulty. CTOs must build high-performance teams in environments that weren’t built for them.
5. Strategic Ambiguity
Investment theses evolve. A company bought for buy-and-build may pivot to organic growth or vice versa. CTOs must remain adaptable, often reorienting their roadmap mid-flight to align with shifting priorities.
6. Exit-Driven Engineering
Every decision is viewed through the lens of exit readiness. Whether it’s platform consolidation, AI adoption, or internationalisation, CTOs must ensure the tech narrative supports valuation uplift—without compromising operational stability.
Why Alignment Matters
Misalignment isn’t just inefficient—it’s expensive. A Platform CTO in a fragmented M&A environment may struggle to prioritise integration over innovation. An Integration CTO in a high-growth SaaS business may stabilise operations but fail to accelerate them.
Sophisticated investors rarely make these mistakes—but even the best can underestimate how fast the technology agenda shifts post-acquisition. AI adoption, international expansion, and enterprise readiness compress timelines and demand CTOs who can pivot quickly.
What PE Investors Should Ask
• What is our value creation thesis—and how does technology enable it?
• Are we solving for velocity, coherence, transformation, or innovation?
• Does our CTO have the scars and pattern recognition to lead at portfolio pace?
At Calibre One, we’ve seen firsthand how the right CTO unlocks operational leverage, investor confidence, and premium exit multiples. The wrong one doesn’t just slow you down—they cost you silent years you never get back.