If the last decade of private equity was about multiple expansion, the next will be about operational value creation.
We’ve heard it repeatedly from investors and operators alike: in a longer-hold, lower-multiple world, you can’t just buy and sell, you have to build. That’s where Operating Partners come in.
Moving Beyond Financial Engineering
Operating Partners bring hands-on execution power:
- Strategic Planning: From 100-day plans to multi-year growth roadmaps, they help portfolio companies pivot from reactive to proactive.
- Commercial Excellence: They step into sales and marketing, designing go-to-market strategies, upgrading talent, and unlocking growth.
- Operational Capability: Through continuous improvement programs and functional best-practice forums, they help management teams scale.
The Coaching Imperative
Execution is not just about rolling up sleeves, it’s about coaching management teams. Successful Operating Partners balance hands-on involvement with empowering leaders to own the business. That’s what creates durable, transferrable value at exit.
At Auxo Advisors, we’ve seen firsthand how the right blend of coaching, strategy, and execution transforms portfolio companies. It’s not about replacing management, it’s about building capabilities that outlast the investment period.
A Repeatable System for Growth
What makes this model so powerful is its repeatability. By embedding proven playbooks and scalable processes, funds create consistency across diverse portfolios. And when every company in a fund is moving in the right direction, overall performance compounds.
For private equity firms, outsourced Operating Partners deliver this system without adding permanent headcount. It’s the fastest path to operational excellence in today’s environment.
The bottom line: Dedicated operational focus is no longer optional. Buyers expect turnkey platforms that are scalable, resilient, and positioned for exit. Without operational upgrades, firms risk stalled value creation and reduced buyer appetite.
Go deeper: Stay tuned for the final article in this series, in which we’ll explore the winning edge operating partners bring to competitive deal processes.