What Defines a Strong CRO in Middle-Market PE
In PE, profitable growth drives 50%-70% of equity value creation and directly impacts ROI to LPs. A strong CRO is critical – a proven operator with execution discipline, strong leadership, and a track record of driving predictable growth.
They drive predictable growth, manage complexity, and execute the investment thesis to build value (a CRO is essentially a CEO focused solely on revenue growth – many top CEOs are ex-CROs, revenue leadership is foundational).
I. Tangibles:
– Track Record
Table stakes – look for the CRO who 2x’d or 3x’d revenue, owned and delivered predictable growth.
– Experience with Larger ARR
They have led revenue base 2x-3x the current size to know what scale looks like and how to get there.
– Compatible GTM Motion
They’ve scaled companies with your GTM motion (Enterprise, MM, channel, or hybrid) and similar ACVs/TCVs.
– Scaled Larger, Complex Teams
They’ve led bigger teams, multiple add-on products (for cross-sell/upsell), in multiple segments and geographies.
– Systems, Not Just Teams
At scale, CROs build repeatable systems. They’re not coaching reps at $200M in ARR – they’re scaling systems and improving efficiency.
– Operational Excellence & Rigor
They must bring rigor to operations which is critical in PE portfolios.
– Data-Driven GTM Management & Decision Making
A strong CRO is data/metrics-driven. They are fluent in capacity planning and all key GTM metrics – and should understand RevOps as deeply as their own VP of RevOps.
– Execution Discipline
The CRO must deliver results and build accountable teams. Look for a track record of sequential revenue and bookings growth, QoQ and YoY.
– Cross-Functional Leadership
This isn’t just sales. They must align all GTM (sales, marketing, CS, etc.) and product and other functions around Revenue Growth.
– Resource Allocation & ROI Focus
The CRO must know where to deploy capital and resources for the highest ROI. Every initiative should tie back to ROI and equity value creation in partnership with the PE firm.
– PE Board Experience
The CRO is not just running GTM, they’re critical to the investment thesis and a collaborative partner to the PE firm.
– Industry Expertise
Not always the critical top priority – it’s easier to learn an industry than to learn how to be a strong CRO. Still, market familiarity can accelerate impact, especially in complex or nuanced markets.
II. Intangibles
Note: tangibles above are table stakes – intangibles are key.
– CRO-Company Fit (aka “Culture Fit”): misalignment erodes value.
– CRO-CEO Fit: Compatibility is non-negotiable. Otherwise, execution stalls and value erodes.
– Leadership: This is the #1 – the CRO must recruit & build high-performing teams. Look for a clear leadership philosophy & a track record of building effective teams.