The Financial Services chapter of Erik Rothschild's career had a major impact on how he handled financial leading his first job.
Before joining inventory and order management software company CIN7 in 2023, he established financial leadership positions in venture capital and private equity support businesses such as Sovan Holdings and Social Native. Prior to that, he was an analyst and portfolio manager for alternative investment companies Stark and Peak6.
“Portfolio management, the first CFO to be promoted from SVP in finance and accounting last February, said, “It taught me how to consider weight and return to portfolio management.” Investor Lens Rothschild has sparked the role of CFO, combined with his early experience at FP&A, “it's crucial, data-informed and mercilessly outcome-oriented,” says Rothschild.
CFO leadership recently interviewed Rothschild to discuss the lessons of portfolio management applied as CFOs, the importance of collaboration with finance and sales, and what taught him about the 2008 financial crisis that stood out in the “brutal” market for job seekers.
We have adopted a little unique path to the role of CFOs. Started portfolio management and went to FP&A. What are the most important lessons from your career journey that will inform you of your approach to your position?
Coming from portfolio management, I developed high resistance for ambiguity. In a transaction, you make decisions based on incomplete information. You learn to trust frameworks and move faster. It has served me well in leadership, especially in dynamic environments such as PE-backed companies with unrelenting pace.
By stepping into FP&A, he taught me the importance of clearly translating communication and complexity, and how to operate your strategy and tell your financial story. The best finance leaders don't just know the numbers. They help others understand what the numbers mean and what to do next. It's something I push my team to make them better every day.
How has your background as a budget and spending gatekeeper helped you, knowing when to spend on inventory and when to pull back?
It will know the opportunity cost of your capital. What is the return of this dollar if it is deployed elsewhere and elsewhere? Inventory is a working capital investment, and what's important is that it supports growth and simply ensures that it sits idle.
It will know the opportunity cost of your capital. What is the return of this dollar if it is deployed elsewhere and elsewhere?
Use a combination of real-time data, historical trends, and forward-looking metrics to guide that decision. Do you see sales speeds accelerate? Are your lead times tighter? Are you missing out on revenue because of stockout? They are signs of investing more. Conversely, if you are watching excess or outdated stock creep up, or if your macro state is softened, you can pull back to protect your liquidity.
It is important to remain agile, especially in PE-supported environments. They may be re-employed quarterly or at times of monthly change. By actively working on scenario planning, you can make a call before you feel any pain.
As a CFO, how do you secure your finance team goals with your sales team goals?
My role starts by incorporating finance early in the sales planning process, particularly focusing on forecasting, pipeline health and customer segmentation. Both teams need to understand the operational and economic impact of sales targets.
We work closely together by reviewing real-time data on inventory levels, sales trends and lead times. For example, if sales are being pushed into new markets, or if demand for a particular product is increasing, finance will work with them to determine the correct inventory level while managing cash flows and supplier capabilities.
By focusing on shared KPIs, both teams work to minimize risk and maximize customer satisfaction, including preventing stockouts and overattacks. It is about having open communication and mutual understanding, allowing you to act quickly when things change.
Learning that you began your career during the 2008 financial crisis, what advice would you give to financial professionals who are aiming to stand out in the job market?
What began in the midst of the 2008 crisis taught me that resilience and action can break bloodlines. At the time, the employment landscape was cruel. So instead of submitting my resume, I went into an interview with trade ideas and perspectives. The willingness to go beyond the briefs made all the difference.
Today's market is just as competitive, with outstanding candidates being candidates who bring more than qualifications. They bring initiatives. If you can connect dots with market trends or show that you have discovered cost-effectiveness that others have missed, you are not only applying for a job, but also showing value on the first day.
Plus, don't underestimate the power of momentum. Consider roles that may provide a steep learning curve early in your career, rather than checking all boxes. During times of uncertainty, you are known as someone who builds scope, sharpens your instincts, and grasps things quickly.
