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What is an operating partner?

Operating partner

An independent adviser hired by a private equity firm. These partners work with portfolio companies to improve their strategies and help them develop their operations. They tend to have wide experience of leading a business.

Where have you heard about operating partners?

Although it's quite a niche role, you may see operating partners mentioned in financial reports issued by private equity firms. Their ultimate goal is to make the businesses in which private equity groups invest more valuable.

What you need to know about operating partners.

Operating partners don't have fixed duties. Instead, they may carry out a wide range of tasks to support the development of a portfolio company. For example, they might help a business to make acquisitions or simply assist in its day-to-day operations. Operational efficiency and financial controls are among the other areas where these partners can help out.

Private equity firms often seek to recruit former chief executives and chief financial officers as operating partners, or other people with experience of generating shareholder value.

Find out more about operating partners.

For more on how private equity groups operate, read our definition of private equity.

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