Hiring your first treasury professional as a private equity-backed scale up

As a private equity (PE)-backed scale-up, one of the most important milestones in your company’s growth journey is the decision to hire a treasury professional. This crucial role will help you effectively manage your company’s cash flow, liquidity, financial risks, and capital structure — all of which become increasingly complex as you scale. A strong treasury function can provide a solid foundation for your business’s expansion, while ensuring financial stability and helping you navigate both day-to-day operations and strategic financial decisions.

In this article, we’ll explore why hiring a treasury professional is a vital step for scale-ups, what to consider when making the hire, and how to find the right fit for your team.

What does a Head of Treasury do?

A Head of Treasury is a senior executive responsible for overseeing and managing an organisation’s treasury operations. The treasury function focuses on managing a company’s financial resources, liquidity, risks, and funding. This role is critical in ensuring the company has enough cash flow to meet its obligations and optimise its capital structure.

Why hiring a treasury professional is critical for scale-ups

Scaling financial complexity: private equity-backed scale-ups often experience rapid growth, which can bring about a variety of financial challenges. As you expand into new markets, increase headcount, or take on new debt or equity investments, your treasury operations will need to grow with you. A treasury professional can manage cash flow, working capital, and debt compliance while ensuring that there is enough liquidity to support your operations.

Risk management: financial risk, such as currency fluctuations, interest rate changes, and commodity price volatility, becomes more significant as your scale-up grows. A treasury professional will be skilled at finding and mitigating these risks, ensuring that your business is protected from sudden market shifts.

Efficient capital allocation: as a PE-backed company, you may need to optimise the use of capital, whether by managing debt effectively or making sure that available funds are being deployed in the most efficient way possible. A treasury professional will help monitor cash reserves and ensure that funds are allocated appropriately across the business.

What responsibilities does a treasury professional have in a scale-up business?

The specific responsibilities of your treasury professional will depend on your company’s size and maturity. However, the following are common duties they are likely to perform:

Cash management: your treasury professional will be responsible for daily cash flow management, ensuring that the business has sufficient liquidity to meet operational needs while optimising cash reserves.

Risk management: identifying and managing financial risks — such as currency fluctuations, interest rates, and commodity prices — will be a key function. They’ll also develop strategies like hedging to mitigate exposure.

Internal stakeholder management: when setting up a new treasury function, it essential that your hire is adept at developing and managing internal relationships to ensure the function is set up properly.

Bank and investor relationships: a treasury professional will work closely with banks to optimise credit facilities, negotiate terms, and manage cash accounts. In a PE-backed scale-up, they will also interact with your private equity investors, providing them with regular financial updates and strategic advice.