Private Equity Interim Guide: Carve-Outs, VCPs & Rates
Author: Gary Pine · Updated: April 2026 · Market: UK & Europe
The authoritative guide to PE interim mandates. Private Equity assignments operate on compressed timelines, with significant capital and Value Creation Plan (VCP) milestones at stake.
Why PE Differs From Corporate
- Pace: A carve-out that takes 18 months in a corporate must complete in 6 in PE.
- Pressure: Investor reporting and IRR targets compress decision cycles to weeks, not quarters.
- Complexity: Distressed assets, cross-border deals, integration challenges — deep domain expertise required.
The Six PE Mandate Archetypes
- Carve-Outs: Standing up a divested business unit as a standalone entity. CFO + COO + IT lead trio common.
- TSA Exits: Migrating off Transitional Services Agreements before the cliff date.
- Cost-Outs: EBITDA expansion via headcount, procurement, footprint, and overhead reduction.
- Buy-and-Build / PMI: Integrating bolt-on acquisitions into the platform company.
- Turnarounds: Distressed restructuring, lender negotiations, working capital crisis management.
- Exit Readiness: Grooming the asset for sale: financial hygiene, vendor due diligence, equity story.
The Value Creation Plan (VCP)
Every PE-backed business operates against a 3–5 year VCP signed off at deal close. Independent operators are deployed to accelerate, recover, or de-risk specific VCP workstreams. Top operators read the VCP first, then build their 100-Day Plan against it.
The First 100 Days
- Days 1–30: Diagnosis. Cash, customers, top 20 contracts, key people interviews.
- Days 31–60: Stabilisation. Quick wins, early cost-outs, governance reset.
- Days 61–100: Trajectory. Build the 12-month plan; secure Sponsor and Board approval.
Rates & Upside
PE day rates carry a 15–30% premium over corporate equivalents. See the 2026 day rate guide for benchmarks. Top operators negotiate completion bonuses, exit bonuses, or MIP (sweet equity) participation.