With valuation multiples at all-time highs, private equity firms are under increasing pressure to create sustainable value in their portfolio companies. LPs are also keener than ever for fund managers to focus on value creation and, crucially, to demonstrate the progress they are making.
Design of the operational model and its execution are hot topics in the industry and general partners differ in their approaches. Firms may have an in-house team of sector specialists, use generalist operating partners on staff or rely primarily on external consultants. Given how essential the function is to value creation, the role of the operating partner in private equity has never been under greater scrutiny.
Private Equity International is running a research project to gain a deeper understanding of how private funds run their value creation practices, how operating partners themselves are responding to the evolution of the role, and how the value of the function is measured and understood.
Don’t forget to take part in the Operating Partner Survey 2016 before 7th October to receive a complimentary copy of the results.