What is operating partner?

An operating partner is a professional who works directly with a private equity firm or venture capital firm to provide strategic and operational support to the portfolio companies in which the firm has invested. They often have significant industry expertise and experience, and are typically brought in to help improve the performance and operations of a company.

Operating partners typically work closely with the management teams of portfolio companies to identify areas for improvement, develop and implement growth strategies, and drive operational efficiencies. They may also assist with key decisions such as mergers and acquisitions, financing, and talent management.

Operating partners are usually compensated based on the performance of the portfolio companies they work with, often receiving a share of the profits generated from successful investments. They are an integral part of the investment team and play a crucial role in helping portfolio companies achieve their strategic objectives and enhance their value.