Fractional C Suite

Exec Capital places fractional C-suite executives across every function, including fractional CEOs, COOs, CFOs, CMOs, CTOs, CIOs and Chief People Officers, with UK businesses that need experienced senior leadership without the cost or commitment of a full-time hire. A fractional executive typically works one to three days a week, bringing a proven track record from comparable businesses. This is not a junior hire filling a gap: it is a senior executive making a real strategic contribution on a flexible arrangement.

Fractional leadership has become a mainstream way for growing businesses to access senior capability, and for experienced executives to build a portfolio of roles rather than a single full-time position. It suits founder-led companies, scale-ups, private equity-backed businesses and family-owned firms alike. For fractional CFO and Finance Director roles, our sister firm FD Capital specialises in senior finance appointments.

Fractional C-Suite Recruitment by Function

These are the fractional roles we are asked to fill most often. Each has its own page explaining what the role covers, when businesses use it and how we run the search.

We also place fractional executives in specialist and newer C-suite roles. For regulated firms, fractional compliance leadership (SMF16 and SMF17) is the role we fill most often:

Part-Time and Fractional Director Roles

Not every business needs a C-suite title. Many of our fractional appointments are Managing Directors, Finance Directors, HR Directors and commercial leaders who work part-time with owner-managed and growing businesses. Part-time and fractional are often used interchangeably: part-time roles usually have fixed days each week, while fractional arrangements can flex with the needs of the business.

How a Fractional Engagement Works

A fractional executive is a senior leader who works for your business for an agreed number of days, usually one to three a week, often alongside one or two other clients. They attend board and leadership meetings, own their function and lead the team, but without a full-time salary, benefits or long-term commitment.

• Time commitment. Most engagements start at one or two days a week, with the flexibility to increase around a fundraise, a launch or a busy period.
• Commercial arrangement. Fractional executives are usually paid a day rate or a monthly retainer, invoiced through their own limited company. The off-payroll working (IR35) rules need to be considered for each engagement.
• Length. Engagements are usually open-ended with a notice period of a month or so on each side, so you can scale up, scale down or move to a permanent hire as the business changes.
• Accountability. A good fractional executive takes full ownership of their function, with clear objectives agreed at the start and regular reviews.

When a Fractional Executive Is the Right Model

Fractional appointments work particularly well in four situations:

Before investment. A business approaching its first institutional round often needs CFO-level financial discipline, CMO-level go-to-market clarity and COO-level operational structure at the same time, but cannot justify three full-time C-suite hires. A small team of fractional executives can provide all three for less than the cost of one full-time hire.

After investment. Private equity and venture investors often bring in fractional executives soon after completion to start value creation while permanent hiring is under way. See our private equity recruitment page for more.

Building a new function. Where a business is creating a function for the first time, such as its first marketing leadership, compliance function or technology strategy, a fractional executive can design it, hire the team and set up the processes before the business is ready for a full-time head.

Founder transition. Where a founder is stepping back from day-to-day operations, a fractional CEO or COO can take on operational leadership gradually, allowing the founder to stay involved in strategy without rushing into a permanent appointment.

How We Place a Fractional Executive

1. The brief

We start with what the business needs the fractional executive to achieve in the first six to twelve months, how many days a week the role needs, the budget and who they will work with. A clear brief is what lets us move quickly.

2. Shortlist

Our search team approaches fractional executives who have done the same job in comparable businesses, checks their availability, day rate and fit, and introduces a short list of strong candidates on a timetable we agree with you at briefing.

3. Interviews and agreement

You meet the candidates, we gather feedback on both sides, and once you have chosen we help agree the days, the rate, the notice period and the objectives for the first review.

4. Ongoing support

We stay in touch through the first months of the engagement. If the business later needs a permanent hire, the fractional executive often helps recruit their full-time successor, and we can run that search too.

Fractional, Interim or Permanent?

Fractional executives work part-time on an ongoing basis and suit sustained leadership needs at a level the business cannot yet justify full-time. Interim executives work full-time or close to full-time for a defined period and suit urgent, intensive requirements such as a sudden departure, a turnaround or a transaction. Permanent appointments suit roles that are central to the business for the long term. Our guides below set out the trade-offs.

Fractional Compliance Leadership: SMF16 and SMF17

The fractional appointment we are asked to make most often is not a CFO or a CMO. It is a part-time compliance officer or money laundering reporting officer for a smaller FCA-regulated firm: a broker, an adviser, an investment firm or a start-up working towards authorisation. Under the Senior Managers and Certification Regime, the person in charge of compliance oversight holds the SMF16 function and the person responsible for anti-money laundering holds SMF17. In many small firms one experienced individual holds both, a few days a month, which is exactly the kind of senior, part-time commitment a fractional arrangement is built for.

Holding a senior manager function is about responsibility, not hours. A fractional SMF16 or SMF17 is accountable to the FCA in the same way as a full-time holder, so the firm has to be satisfied, and able to show the regulator, that the person has the knowledge, experience and time to do the job properly alongside their other commitments. SMF16 and SMF17 remain functions that need FCA approval before the individual starts. Recent consultations on moving some senior manager functions to a notification basis do not change that for these two roles. Our guide to whether you need SMF16, SMF17 or a combined role sets out the choice in more detail.

Timing matters. Under section 61 of the Financial Services and Markets Act 2000 the FCA has three months to decide a complete application, and the FCA reported a median of around 25 days for senior manager approvals in 2025/26; our article on how long FCA SMF approval takes covers what slows applications down. If an SMF16 or SMF17 leaves unexpectedly, the temporary cover rule in SUP 10C (SUP 10C.3A.6R, as updated in April 2026) gives the firm 12 weeks to submit an application for the replacement, and FCA consultation CP26/37 proposes extending that to 18 weeks. Payment and e-money institutions sit outside SMCR, but they still need a money laundering compliance officer and a nominated officer under regulation 21 of the Money Laundering Regulations 2017, which a part-time MLRO can often cover.

How It Works at a Glance

The steps below summarise how a fractional search runs from first conversation to the executive settling in. We agree the timetable with you at briefing rather than promising a fixed number of days, because the right pace depends on the role, the market and how quickly you can meet people.

Permanent, Interim, Fractional or Part-Time: Format Comparison

Each format solves a different problem. The table below sets out how they compare so you can choose the one that fits your situation; we run searches in all four.

If you are weighing a fractional hire against a permanent one for people leadership, our Chief People Officer recruitment page covers the permanent route, and for compliance leadership the CCO recruitment page does the same.

What a Fractional Executive Typically Delivers in the First 90 Days

Because a fractional executive is only with you for part of the week, the first three months need a clear shape. In our experience the strongest engagements follow a similar pattern, whatever the function:

• Weeks one to four: diagnosis. Meeting the board, the team and key stakeholders, reviewing the current position of the function and agreeing the few priorities that matter most.
• Weeks five to eight: foundations. Putting in place the reporting, processes, policies or plans the function is missing, and fixing the most pressing gaps. For a compliance officer this usually means the compliance monitoring plan, the regulatory calendar and the first board report.
• Weeks nine to twelve: delivery and review. Visible progress against the agreed priorities, a view on whether the days per week are right, and a plan for the next quarter.

We agree these objectives with you at the start, so the first review is a conversation about evidence rather than impressions.

Engagement and Fees

Our fee structure is agreed with you at the briefing stage, before any search work starts, so there are no surprises later. For permanent appointments we can work on a retained or contingent basis depending on the seniority and difficulty of the role; our guide to retained versus contingent executive search explains when each fits. For interim and fractional appointments, the executive is engaged on a day rate or monthly retainer, and that rate includes our fee, so you have one figure to budget against. We do not publish rates because they depend on the role, the sector, the level of regulatory responsibility and the number of days, but we will give you a clear view of the market at the brief.

Fractional executives usually invoice through their own limited company, so the off-payroll working rules need to be considered for each engagement. Changes to the company size thresholds took effect for financial years beginning on or after 6 April 2025, but HMRC has said they will have no practical impact on off-payroll working until 6 April 2027 at the earliest.

Who We Place Fractional Executives With

Most of our fractional clients are businesses where the leadership need is real but a full-time C-suite salary would be out of proportion to the stage of the company. Typical clients include:

• Small and medium-sized FCA-regulated firms, including brokers, advisers, investment firms, lenders and firms seeking authorisation, that need SMF16 and SMF17 cover.
• Founder-led and owner-managed businesses preparing for growth, investment or succession.
• Venture-backed start-ups and scale-ups building their first senior team.
• Private equity-backed portfolio companies in the period after completion.
• Family-owned firms and not-for-profit organisations that need specialist expertise for a defined programme.

If you would rather talk the options through first, contact our team or call 0203 834 9616. If you are an experienced executive looking for fractional work, please register as a candidate and see our current opportunities.

Frequently Asked Questions

How much does a fractional executive cost?

Fractional executives are usually paid a day rate or monthly retainer. The rate depends on the role, the seniority and experience of the executive, the sector and the number of days. Because you only pay for the days you need, the total cost is usually well below a full-time salary and benefits package. We will give you a clear view of current market rates at the brief stage.

How quickly can a fractional executive start?

Many experienced fractional executives can start within a couple of weeks of agreement, because they are already working on a portfolio basis rather than serving a long notice period.

Can a fractional executive become permanent?

Sometimes. Some businesses use a fractional engagement to test fit before making a permanent offer, while others keep the fractional executive in place for years as the business grows. We will talk through the options with you at the start.

Do fractional executives work with more than one business?

Usually, yes. Most fractional executives work with two or three clients at a time. We check for any conflicts of interest before introducing a candidate.

Can a fractional compliance officer hold SMF16 or SMF17?

Yes. The FCA approves the individual for the function, not for a number of hours. The firm must be satisfied that the person has the experience and enough time to do the role properly, and the application has to be approved before they take it on. Many smaller firms appoint one fractional individual to hold both SMF16 and SMF17.

What happens if our SMF16 or SMF17 leaves suddenly?

Under the temporary cover rule in SUP 10C.3A.6R, a firm can appoint someone to cover and has 12 weeks to submit an application for approval; FCA consultation CP26/37 proposes extending this to 18 weeks. We can introduce interim or fractional cover while the permanent position is resolved, and our guide to interim SMF16 and SMF17 cover explains the options.

Do payment and e-money firms need an SMF17?

Payment and e-money institutions are outside the Senior Managers and Certification Regime, so they do not hold SMF17. They do still need to appoint an officer responsible for compliance with the Money Laundering Regulations and a nominated officer under regulation 21, and a fractional MLRO is a common way to cover that.

Does IR35 apply to a fractional executive?

It can. Where a medium or large client engages a fractional executive through their own company, the client must assess employment status under the off-payroll working rules. For small clients the assessment stays with the executive’s company. We flag this at the brief so the engagement is set up correctly.

How are your fees structured?

We agree the fee structure with you at the briefing stage. For interim and fractional appointments the executive’s day rate or retainer includes our fee; for permanent hires we work on a retained or contingent basis depending on the role.

Also see: Hire an MD or CEO  ·  Current Opportunities. Useful external resources: FD Capital, fractional CFO specialists  ·  UK Private Capital  ·  HMRC: off-payroll working (IR35)