Fractional project management for private equity: A smarter way to protect EBITDA, accelerate value creation, and cut delivery risk

Private equity lives and dies by operational discipline. Returns don’t come from strategy decks. They come from execution.

That is exactly where most portfolio companies fall down. McKinsey’s 2023 Transformation Report found that 70 percent of value-creation plans miss their operational targets, with weak delivery capability cited as a top cause. Bain’s research shows that overruns and delays erode up to 25 percent of planned EBITDA uplift in the first 18 months of ownership.

This is why fractional project management is gaining traction across PE. It gives portfolio companies senior delivery capability without the cost, delay, or rigidity of hiring full-time staff.

Understanding fractional project management

Fractional project management means bringing in a senior operator on a part-time, outcome-based basis, rather than hiring a full-time PM or delivery lead. It gives PE-backed companies access to top-tier execution support exactly when they need it.

You avoid the usual 9-12 week hiring lag, onboarding drag, and permanent overhead.You get focused delivery pressure from someone who has already solved the problems you’re facing..

Why fractional delivery cuts costs immediately

Hiring a full-time project manager in the UK or US means:

• £85k to £120k salary

• 20 to 30 percent on-costs

• 3 to 6 months of ramp-up

• Long notice periods

• Risk of underutilisation once the urgent work is done

Planning workspace for effective project management

Across PE portfolios, this creates two common issues:

1. Cost drag when the project workload fluctuates

2. Paying for a senior PM who spends half their time firefighting outside their remit

Fractional PM solves both. PE firms typically save 45 to 65 percent on delivery overhead by shifting from full-time PM headcount to fractional, according to data from multiple PE ops teams and interim-management providers.

A real example:A PE-backed SaaS portfolio company we supported was carrying a permanent delivery headcount cost of just over £310k across two senior PMs. Moving to a fractional model brought that down to £112k, while doubling project throughput in the first quarter.

Speed matters in PE, and fractional delivery is faster

Speed is non-negotiable. Every month lost reduces the exit case.

Hiring a full-time PM takes 9 to 14 weeks in the UK and 10 to 16 weeks in the US. That is before onboarding and before they understand the delivery landscape.

Fractional PM deploys in days. Not weeks.And because you’re buying experience, not bodies, you skip the slow “learn the business first” phase.

A PE-backed healthcare asset we worked with used a fractional delivery lead to navigate a regulatory go-to-market window that would have taken six months with a full-time hire. They hit compliance, launched early, and captured market share competitors missed.

Why PE firms are shifting to fixed-cost statements of work

Time-and-materials billing is a trap for portfolio companies. It fuels scope creep, reduces accountability, and makes financial forecasting harder.

Gold Project Management uses fixed-cost statements of work tied to outcomes. Not hours.

This gives PE operators:• Clean cost predictability• Zero drift in spend• True accountability for delivery• A clear path from investment thesis to operational reality

One manufacturing client cut project-related spend by 40 percent because we removed hourly billing and tied everything to defined outputs.

Project management dashboard showing timeline and milestones

What to evaluate when considering a fractional approach

Before shifting to a fractional delivery model, PE operators should evaluate: • Complexity of the value-creation plan • Internal bandwidth versus expectations • Whether pace needs to increase immediately • Whether current project management roles are actually strategic or just firefighting • How much of the current burn is tied up in delivery inefficiency

Most PE firms discover the same thing: they don’t need a full-time project manager. They need structured, senior delivery pressure at the right time.

The Benefits of Fixed Cost Statements of Work

One significant challenge in project management is scope creep. Traditional time-based billing can lead to unexpected costs as projects evolve. Fixed cost SOWs are designed to mitigate this risk, providing clients with a clear understanding of project costs upfront.

For a recent client in the manufacturing sector, Gold Project Management was able to help streamline operations while staying under budget. The client reported a 40% reduction in project-related expenses compared to their previous experiences with time-based billing.

Why partners choose Gold Project Management

We operate like a fractional PMO desk for PE-backed companies. You get: • Immediate deployment • Senior operators with deep transformation experience • Fixed-cost outcomes, not open-ended hours • Delivery systems that protect EBITDA • A clear and repeatable cadence that aligns founders, leadership, and investors

Our work consistently reduces project overhead, accelerates roadmaps, and gives PE operators visibility they rarely get without building an in-house PMO.

Project metrics displayed on a screen for analysis

Take the next step

If you want to explore whether fractional delivery could reduce costs, speed up execution, or stabilise an underperforming portfolio company, we can talk you through the options.

Book a consultation with Gold Project Management and we’ll walk you through the model, the numbers, and what it would look like for your portfolio.

No jargon. No bloated retainers. Just delivery that works.