.jpg)
I've been talking with investors lately who have this recurring challenge. They've got a portfolio company that's doing... fine. The fundamentals are solid but growth is sluggish. The numbers aren't awful, but they're not singing either.
Maybe it's the B2B SaaS company with a cracking product but clunky go-to-market execution. Or the manufacturing business with healthy margins but zero digital transformation. Perhaps it's the promising fintech that can't crack enterprise sales.
You see the potential. You know what good looks like. But here's the rub: you're an investor, not an operator.
What I've noticed about investor blind spots
I see this pattern all the time. You can read a P&L like others read the morning news. You spot market opportunities from a mile away. You understand competitive dynamics and can smell a good deal.
But when Company X in your portfolio needs their marketing strategy completely rebuilt, or Company Y requires a total sales process overhaul, you're suddenly operating outside your wheelhouse.
Sure, you could hire McKinsey. Drop a quarter million on a six-month engagement that delivers a beautiful PowerPoint deck and not much else. But who's actually going to roll up their sleeves and implement those recommendations? And will they stick around to see it through?
I've watched this play out. Probably not.
What most investors haven't figured out yet
But there's another option that's gaining traction: you can borrow the expertise you need, exactly when you need it.
I'm talking about fractional leadership. Think of it as having access to a bench of seasoned operators who've been there, done that, and have the battle scars to prove it. Former VPs of Sales who've scaled revenue from $5M to $50M. Ex-CMOs who've launched products into completely new markets. CTOs who've rebuilt entire tech stacks while keeping the lights on.
These aren't consultants who parachute in with theoretical frameworks. They're hands-on operators who know how to get stuff done.
What I've seen work across portfolios
Instead of accepting ho-hum performance or throwing more money at the problem, more investors are realising they can inject exactly the expertise that's missing:
- Revenue stuck in neutral? Bring in a fractional CRO who's scaled sales teams before. They'll audit what's broken, rebuild the processes, and put in place the systems for sustainable growth.
- Marketing a mess? A fractional CMO can overhaul your go-to-market strategy, fix your funnel, and build brand positioning that actually drives premium pricing.
- Operations all over the place? A fractional COO will streamline processes, implement the right tech, and create operational excellence that improves your margins.
The beauty? You're not locking yourself into a full-time hire that might not be needed long-term. You're accessing expertise on-demand, for exactly as long as it takes to fix the problem.
Results, not billable hours
Unlike traditional consulting, fractional leaders have skin in the game. They're measured on outcomes, not how many PowerPoints they can produce. Most work 2-3 days per week, which means they can't afford to waste time on politics or busy work.
A good fractional exec often gets more done in 20 focused hours than a full-timer manages in 40. No fluff, just relentless focus on what actually moves the needle.
The multiplier effect I keep seeing
Here's where it gets really interesting for investors: you can apply this approach across multiple portfolio companies.
I've seen that fractional CRO who transformed Company X's sales process bring those same frameworks to Company Y. The CMO who cracked enterprise marketing? Perfect for your other B2B investments.
You're essentially creating shared expertise across your portfolio, spreading costs while multiplying impact.
When to make this move
From what I've observed, the warning signs are usually pretty obvious:
- Consistent underperformance in key areas
- Leadership gaps holding back growth
- Need for expertise that just doesn't exist internally
- Strategic initiatives that keep getting botched or delayed
- Founding team members in C-suite roles they're not equipped for (I also wrote about it here)
I've learned that the sweet spot is when you spot the gap, not when everything's on fire.
Beyond the immediate returns
Fractional leadership offers benefits that go way beyond the obvious financial wins:
- Speed: No lengthy recruitment processes. These operators hit the ground running from day one.
- Lower risk: Less commitment than a full-time hire, but way more accountability than a consultant.
- Knowledge transfer: The best fractional leaders don't just fix problems – they build internal capability so improvements actually stick.
What I've learned about building networks
Forward-thinking investors are already building relationships with fractional leaders. Think of it like deal flow, but for talent instead of companies.
Through my experience, the most successful investors get that great companies need three things: great ideas, great markets, and great execution. The first two are table stakes. The third one? That's where fractional expertise can make all the difference.
While everyone else is still playing the old game – throwing money at problems or accepting mediocre performance – I've seen progressive investors deploy surgical expertise to drive outsized returns.
Your portfolio companies perform better. Your returns improve. Your reputation as a value-add investor grows.
It's not just capital anymore. It's about having the right talent at the right time.
Shepherd: on-demand expertise for your portfolio
Ready to unlock potential across your investments? We partner with investors to bring them fractional leaders who've scaled teams at successful companies. From revenue growth to operational excellence, we've got the expertise you need.
