Operating Partners
topic on 4 shows · 11 statements across 10 episodes
Masters of Scale 
Capital Allocators 
the a16z Podcast 
20VC
11 statements about Operating Partners, every show
Verdian: Private equity cannot fix software companies by deploying AI operating partners
“You can't just throw an operating partner at the company and say, let's put AI on it. It just doesn't work. You need to completely, and if you have, by the way, if you do have a founder mentality at the management team, like, it is possible, but the board has …”
Private equity operating partners must be collaborative and non-threatening to executives
“That seat is not a seat for every kind of operator to sit in because you have to be open. You have to be non-threatening. You have to be collaborative. You have to give off all of those personal qualities in order for the person that you're talking to give you…”
Maldonado: The most crucial PE diligence step is meeting operating partners
“The biggest thing you could do with a private equity partner is meeting the operating partners that are going to be the ones that are supposed to be helping drive value.”
Kinderhook installs operating partners as CEO in 70-75% of acquisitions
“75, 70% of the time when we buy a company, we're putting in one of our operating partners as the CEO. The other 25, 30%, we're back in the incumbent management team.”
Operating partners invested $100M at full fees in Kinderhook's last two funds
“If you look, the last two funds, operating partners invested a hundred million dollars. They're paying full fees, full carry.”
Traditional venture operating partners lack full status and check-writing power
“Probably the biggest difference is they're not full partners, and sometimes they're not in the full partner meetings, and they don't have the check writing capability in that if there's a follow-on or some financing, they have to go back to the partner group o…”
Sourcing via aligned co-investors is superior to managing operating partners
“I thought instead of thinking of that network as operators who need tremendous oversight and who you don't give much discretion to, you could essentially upgrade To a network of people you think of as investors, whose judgment you trust, who invest their own m…”
Sack: MSCP operating partners receive full carry and investment committee seats
“We've incorporated operating partners who are full members of our investment committee and in our carry pool and joined at the hip with us.”
Heller: Cordillera structures deals to take revenue share in operating partners
“Today, the way that we structure is we will, the fund, our funds and our LPs will get a revenue share in that business. So we will get the return of the assets themselves. And then if the operating partner can build a big business around that, our LPs will ben…”
Only three in ten operating partners at Providence were actually good
“And of the 10 operating partners, three were good, three were mediocre, four were not so good.
Not because they were bad.
They just didn't want to work.”