The problem with Operating Partners?

No one knows what they actually do, and it’s costing the model its best people.

Private equity has embraced the OP model. Over 63% of firms now employ them, up from 46% just five years ago (EY, 2023). But here’s the kicker:

The average tenure of an Operating Partner is less than 3 years

And in over 40% of firms, OPs report to multiple stakeholders with conflicting priorities (Bain, 2022)

Translation?

They’re often set up to fail.

They carry the weight of value creation but sit in the grey zone:

• No P&L ownership
• No formal authority over management
• No clear mandate from the investment committee

Yet they’re expected to drive pricing strategy, digital transformation, org redesign, and hold the CEO’s hand while doing it.

And PE firms know it’s not working.
Some have tried embedding OPs inside portcos as interim CXOs.
Others use a “bench model,” dropping in functional specialists as needed.
A few are giving OPs board seats.

These are steps in the right direction, but still too rare.

Let’s be clear:

The issue isn’t the Operating Partner.
It’s the operating model.

Here’s what needs to change:

1. Define the mandate. Align the OP’s role with the deal thesis. No more generic “value creation” blur.
2. Back them with budget and authority. Influence is great. Authority is better.
3. Tie compensation to measurable outcomes. Not “support,” but actual EBITDA movement.
4. Treat them like investors, not fixers. They’re not there to clean up, they’re there to build.

Operating Partners are often the most overleveraged asset in the fund. High expectations, limited tools.
And yet, when empowered, they’re the best ROI in the business.