CrossCountry’s PE Hire Signals a Market Shift to Operational Value

MCLEAN, VA – December 09, 2025 – In a move that reflects a significant undercurrent in the private equity world, business advisory firm CrossCountry Consulting has appointed veteran private equity leader Jim Clayton to its Advisory Council. While on the surface a strategic hire for a growing consultancy, the appointment is a clear indicator of a broader market evolution: the pivot from a pure deal-making frenzy to an intense focus on post-acquisition operational discipline. For sectors like biopharma, where private equity has become a dominant force, this shift has profound implications for how portfolio companies are managed, grown, and prepared for exit.

Clayton’s role is to provide strategic guidance to CrossCountry’s national Private Equity practice, specifically supporting the services geared toward the Office of the CFO in portfolio companies. His appointment is designed to fortify the firm’s position as a partner for funds seeking to create tangible value in an increasingly complex market. It’s a microcosm of a larger trend where PE firms, facing economic headwinds and higher capital costs, are doubling down on operational expertise to generate returns.

The New Mandate: Discipline in a Cautious Market

The private equity landscape of today is vastly different from that of just a few years ago. The era of cheap debt and soaring valuations has given way to economic uncertainty and rising interest rates. This new environment demands a different playbook, one that prioritizes efficiency, profitability, and sustainable growth within existing portfolios over the aggressive pursuit of new acquisitions.

“In times like these, Private Equity needs to be very disciplined and operationally focused to drive value creation,” noted Erik Linn, Co-Founder and Managing Partner of CrossCountry Consulting, in the announcement. This sentiment captures the industry's current mood. The focus has moved squarely into the post-deal phase, where the real work of transformation begins.

This operational imperative is amplified by what Jim Clayton calls “the number of deferred transactions in this space.” The slowdown in M&A activity has created a backlog of potential deals, but it has also forced PE firms to look inward and find growth within the companies they already own. According to recent BDO surveys—where Clayton previously co-led the Private Equity Industry Group—fund managers are prioritizing top-line growth and operational improvements as their primary value creation levers. This shift places immense pressure on the finance and operations leaders within portfolio companies.

For sectors such as biopharma and healthcare, this operational focus is particularly critical. These companies often navigate long and capital-intensive R&D cycles, complex supply chains, and stringent regulatory pathways. PE sponsors are now demanding more sophisticated financial planning, process optimization, and technology integration to de-risk investments and accelerate the path to profitability or a successful exit.

A Veteran's Edge for Portfolio Transformation

This is precisely where an advisor with Clayton's profile becomes invaluable. His career is a testament to delivering value beyond the initial transaction. Before his time as a Principal at BDO, he founded and scaled the Business Advisory practice at AC Lordi, which catered specifically to mid-market private equity firms. His track record includes executing large-scale transformation projects, some exceeding $100 million, that delivered significant returns to clients.

His expertise is not abstract; it’s grounded in the core challenges facing modern portfolio companies. With deep experience in M&A execution, technology enablement, and process optimization across industries like healthcare, software, and manufacturing, Clayton represents the specialized skill set that PE firms are now seeking from their advisory partners. CFOs in PE-backed companies are often tasked with modernizing legacy systems, integrating acquired businesses, and providing data-driven insights to their sponsors—all while managing understaffed teams and tight budgets. Clayton’s experience is in building the frameworks and leading the teams that solve these exact problems.

By bringing him onto its Advisory Council, CrossCountry Consulting is signaling its intent to move beyond standard accounting and finance support. The firm is positioning itself as a strategic partner capable of guiding portfolio companies through complex transformations, whether that involves a post-merger integration, a major technology overhaul, or a complete redesign of the finance function to prepare for an IPO.

Beyond the Deal: Advisory's Growing Role in Value Creation

The appointment highlights the evolving relationship between private equity firms and the consulting ecosystem. Historically, advisory services were often concentrated around the transaction itself: due diligence, deal structuring, and initial post-close activities. Today, the engagement is becoming deeper and more prolonged. PE firms are embedding specialized advisors into their portfolio companies for the long haul to drive operational alpha.

Clayton himself pointed to this dynamic, stating, “The number of deferred transactions in this space creates exciting market opportunities in the coming years for a firm like CrossCountry.” This isn't just about capturing pent-up deal flow; it’s about serving the existing universe of portfolio companies that need to perform at a higher level to meet investor expectations. Firms like CrossCountry, AlixPartners, and FTI Consulting are competing to become the indispensable partners in this value creation journey.

For portfolio companies, this trend is a double-edged sword. On one hand, it provides access to world-class expertise to solve critical operational and strategic challenges. On the other, it brings a new level of scrutiny and an accelerated pace of change. In the biopharma space, this could mean leveraging AI to streamline clinical trial data management, optimizing manufacturing processes to reduce costs, or strategically preparing a new drug asset for partnership or sale. The ability to execute on these fronts is what will separate the top-performing PE-backed companies from the rest.

Ultimately, CrossCountry’s strategic move is a clear reflection of the maturation of the private equity industry. As the market demands more than financial engineering, the value of deep, practical, and industry-specific operational expertise has never been higher. The advisors who can deliver it will be the ones who thrive, and their impact will be felt directly in the performance of the companies they guide.