What is an operating partner?

An operating partner is an individual who collaborates with a private equity or venture capital firm to manage and grow a portfolio company in which the firm has invested. The operating partner typically has experience and expertise in a specific industry, such as finance, technology, healthcare, or consumer products.

The role of an operating partner is to work closely with the portfolio company's management team to develop and implement strategies that will drive growth, improve operational efficiency, and enhance overall performance. They may also provide guidance and support in areas such as financial management, marketing, sales, and organizational development.

Operating partners are typically brought on board by private equity and venture capital firms to add operational expertise and industry knowledge to their investment team. They often have a hands-on and proactive approach to working with portfolio companies, and may serve on the company's board of directors or take on an executive role within the organization.

Overall, operating partners play a crucial role in helping private equity and venture capital firms maximize the value of their investments by driving growth and operational improvements in portfolio companies.