According to Bain & Company, 70% of mid-market PE firms now cite digital transformation as their top driver of EBITDA growth. At the center of this shift are Tech Operating Partners, executives primarily within Private Equity (PE) firms who combine hands-on technology expertise with strategic business insight to scale operations and drive growth.
These executives have moved beyond system implementation to become true growth leaders.
In PE-backed environments, these leaders guide portfolio-wide digital strategies that align with value creation plans aimed at accelerating growth, boosting efficiency, and setting up successful exits.
Boardroom Value Creators
Steve Mayotte, Tech Operating Partner at New State Capital, explains:
“Technology isn’t a support function in our portfolio companies, it’s part of the strategy. Strong technology leadership drives the changes that let us move faster, scale effectively, and reach the returns we’re aiming for.”
CIOs and CTOs are now seen as key contributors at the board level, with responsibilities that extend well beyond IT operations. They are responsible for enabling revenue growth, protecting margins, and building resilience into the business model.
A major part of this shift is the use of AI and data analytics to:
- Improve decisions.
- Strengthen visibility.
- Drive innovation across products and services.
- Build cloud systems that balance flexibility with cost control.
These leaders also help automate essential processes, creating efficiency gains that directly improve EBITDA.
In the latest Private Equity International editorial, James Sutton captures it perfectly: “The shift in private attitude to artificial intelligence… over the past 12 months has been something to behold.” According to recent surveys, 65% of GPs now cite AI implementation as a top strategic priority.
AI Fluency is Now Essential
Across PE, a new profile of technology executive is taking shape. These emerging leaders combine technical expertise with financial and operational know-how. They understand scalability, cost structures, and integration planning, and most importantly, how to align technology investments with broader business goals.
It’s a core component of strategic decision-making. For example, AI-driven analytics can predict market shifts and customer preferences, allowing businesses to pivot more quickly than ever before.
Today’s technology leaders need to know when and how to apply AI tools to streamline workflows and support growth, as AI has become a core driver of enterprise efficiency.
Timing Is Critical for Value Creation
Timing matters. Bringing the right technology leadership into a company early in the investment cycle allows faster alignment with value creation objectives.
This is especially true for mid-market PE portfolio companies, which often operate with lean teams, fragmented systems, and ambitious growth targets.
The ideal technology leader is an operator who understands the urgency of PE timelines and can translate business objectives into actionable digital strategies. This is where executive search partners like CIO Partners play a vital role in identifying and placing leaders ready to make an immediate impact.
In fact, 85% of technology leaders placed by CIO Partners in PE-backed firms remain through exit, underscoring their long-term influence and cultural fit.
M&A as a Driver of Tech Leadership
As M&A activity continues to shape the technology landscape, integration success has become a defining factor in deal outcomes.
EY’s June 2025 report showing US$38 billion in tech deal value underscores the rising need for strong tech leaders during both acquisition and exit phases. In many cases, leadership changes are made ahead of a sale or shortly after a transaction to speed transformation and ensure systems are prepared for the next phase of ownership.
Effective technology leaders go beyond execution. They design integration strategies that protect value and reduce disruption. Their early involvement ensures that scalability, security, and cost efficiency are built into the post-deal roadmap.
Technology as Competitive Advantage
Tech Operating Partners and CIOs have become value creators, leading digital transformations that drive EBITDA, simplify operations, and position portfolio companies for long-term success.
For private equity firms, bringing in the right technology leadership at the right time can mean the difference between an average return and a market-leading one.
The next generation of technology leaders are architects as well as accelerators.
With the right mix of business sense and digital fluency, the right leader is positioned to help their organizations grow faster and compete effectively in a changing market.
