Finance directors have a one in four chance of being sacked after private equity invests in their organisation, according to a new study.

The risk however has not deterred FDs from becoming PE 'serialists', said a report by Grant Thornton and Directorbank.

The survey of 283 executive and non-executive directors who have completed at least one private equity deal, found FDs have a 28% chance of being replaced, while CEOs have a 24% chance of being replaced.

David Ascott, head of private equity at Grant Thornton, said: 'Finance directors in particular suffer from several risk factors including the demands of leverage calling for a significant change in financial sophistication, external investors scrutinising their work more closely than that of other executive directors, their skills being seen as more of a commodity.'

Another finding revealed that the UK has now followed the US trend of creating private equity 'serialists', a growing body of directors who have completed three or more PE deals, with more than two fifths of directors (41%) now falling into this category, said the study.

The risk for non-executive directors including chairmen was less but still significant, with more than one in ten (12%) changed during private equity deals.