Operating Partner
An operating partner is an executive or advisor employed by a private equity firm to help manage the portfolio companies in which the firm has invested. Unlike traditional private equity partners who focus on deal-making, operating partners specialize in improving the operational performance of portfolio companies, driving efficiencies, and supporting management teams in achieving growth targets. They bring industry-specific expertise and hands-on management experience to the role.
Example
A private equity firm hires an operating partner with extensive retail experience to help streamline operations and increase profitability at a struggling retail company in its portfolio.
Key points
• An executive or advisor hired by private equity firms to improve the operational performance of portfolio companies.
• Focuses on driving efficiencies and supporting management to achieve growth.
• Provides industry-specific expertise and management experience.
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