Written by Jordyn Geiger, Business Development Analyst

Operating Partners are asked to drive outcomes across multiple management teams – each with different architectures, priorities, and levels of maturity. The challenge usually isn’t finding opportunities. It’s deploying a value creation motion that’s repeatable, lightweight, and credible at the board level.

Meanwhile, technology spend keeps rising in the background: cloud and infrastructure usage expands, tools multiply, vendor renewals happen on autopilot, and ownership of spend becomes unclear. These aren’t dramatic failures – they’re the predictable result of growth without a consistent operating system for spend discipline.

That’s why portfolio-wide workload consolidation paired with disciplined FinOps has become one of the most scalable EBITDA levers for lower middle market funds – especially those managing $500M or less with 4–6 portfolio companies. Done well, it reduces run-rate cost, improves accountability, and builds a defensible board narrative around execution.

It’s important to clarify what “consolidation” means in the PE context. This is not about forcing every portfolio company onto the same systems or creating a heavyweight shared services model. The approach that works in lower middle market PE is more practical:

Consolidation = standardize and reuse the building blocks that drive spend discipline, and consolidate selectively where real leverage exists – without disrupting the business.

In practice, that may include common reporting and ownership standards, repeatable guardrails and automation patterns, targeted consolidation of overlapping tooling categories, and portfolio-level commercial leverage with vendors. The goal is to reduce duplication and prevent cost creep while maintaining portfolio company autonomy where it matters.

Most importantly, the best programs follow a simple sequence:

Visibility → Control → Optimization

• Visibility creates a board-ready baseline fast: what’s being spent, what’s driving it, and where value-at-stake exists.
• Control puts guardrails in place, so savings don’t re-leak: decision rights, renewal discipline, and accountability.
• Optimization executes targeted fixes safely, turning the initiative pipeline into real run-rate reductions.

Where FinOps fits is often misunderstood. In a PE portfolio, FinOps is not a set of dashboards – it’s the engine that turns opportunities into outcomes. The moment of credibility is when savings are finance-aligned and measurable:

Identified → Planned → Implemented → Realized.

That’s how “we think we can save money” becomes “we produced validated EBITDA lift.”

We put the full framework into a downloadable tear sheet you can bring to your next board meeting. The download includes the complete cadence, governance approach, and the portfolio-ready assets that make this motion scalable across 4–6 companies.

Download the tear sheet by filling out the form below.