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.