Operating Partner
An operating partner is a specialist who supports portfolio companies with execution: operations, go-to-market, finance, or transformation work.
Definition
Definition Operating partners are non-investment professionals (or hybrid professionals) who work with portfolio companies to improve performance. They may support pricing strategy, margin improvement, hiring, product, sales execution, M&A integration, or financial controls. In private equity, operating partners are often central to the value creation playbook. Allocator Context Allocators evaluate operating partner models for substance: scope, track record, time allocation, and whether operating resources are truly available to portfolio companies. Some platforms advertise operating teams but deploy them inconsistently; institutions look for evidence—case studies, repeatable playbooks, and portfolio feedback. Decision Authority Operating capability can influence manager selection and sizing. Committees may weigh operating resources more heavily in strategies where returns depend on active transformation rather than market multiple expansion. Why It Matters for Fundraising Operating capability is one of the clearest signals of repeatable value creation. Managers that can demonstrate operating impact with credible examples reduce concerns about returns being purely cycle-driven. Key Takeaways Supports execution and value creation inside portfolio companies Must be evidenced, not just described Important for operational improvement strategies Strong operating models improve re-up credibility