1. What value creation strategies have you deployed and what were the outcomes?

   Understanding an Operating Partner's past strategies and their impact provides insight into their ability to generate real, measurable value. Ask for specific examples of initiatives they have implemented, how they were executed, and what results they delivered in terms of revenue growth, EBITDA improvements, or enhanced operational efficiencies.

2. How do you balance the player versus coach role?

   Operating Partners often toggle between being hands-on (players) and guiding management teams (coaches). It's essential to understand their approach to leadership when they choose to intervene directly, and when they step back. Their response will reveal their adaptability and ability to work effectively with portfolio company executives.

3. How do you identify key constraints in portfolio companies?

   A strong Operating Partner must quickly diagnose challenges and inefficiencies within a business. Whether it’s a bottleneck in supply chain operations, inefficiencies in sales processes, or leadership gaps, their ability to pinpoint constraints is a key driver of value creation.

4. Once constraints are identified, how do you prioritize those with the biggest impact on ROI?

   Not all constraints are equal. A great operating partner knows how to prioritize issues that will yield the highest return on investment. This includes evaluating which constraints will have the most significant effect on exit multiples, revenue growth, or EBITDA. Ask them about their decision-making process across different industries and business models.

5. How do you assess and select key executives for portfolio companies?

   People drive business success. The ability to identify, assess, and recruit the right Chief Executive Officers (CEOs), Chief Financial Officers (CFOs), and Chief Operating Officers (COOs) is a critical skill for any operating partner. Understanding their selection process provides insight into their ability to build high-performing leadership teams.

Finding the Right Operating Partner

Hiring the right Operating Partner can significantly impact the success of your portfolio companies. At Raw Selection, we specialize in identifying top-tier Operating Partners who drive measurable results. 

If you're looking to hire for an operating partner role in a Private Equity firm, get in touch with our Founder and Managing Partner, Alex Rawlings: 

E: alex.rawlings@raw-selection.com

T: +1 954 928 9748