The Private Equity Operating Partner: A Practical Guide to Value Creation, Portfolio Operations, and EBITDA Growth

Vireo's equity rose $145.7 million over a five-year hold. Operating work produced 41 percent of it. Deleveraging, which no operating partner performs, produced 20 percent. Would your value creation deck say so?Operating partners are expected to turn an investment thesis into EBITDA, working alongside management and the deal team at once, and then to prove at exit what they contributed. This guide covers that work from the first 100-day plan to the exit, with the failure modes as well as the levers.Who this book is for- Operating partners and value creation professionals at private equity firms- Portfolio company executives working with a sponsor for the first time- Consultants and industry executives considering a move into portfolio operations- Deal professionals who want a clearer view of what happens after closeWorked, not described- The Vireo Health Services bridge, built in full: entry at 14.0 million of EBITDA and 9.5 times, exit at 24.5 million and 10.2 times, 3.08 times money and a 25.3 percent IRR, decomposed into six pieces that reconcile to zero.- The add-on trap: crediting acquisitions with their gross 28.50 million overstates the buy-and-build contribution by 73 percent; net of the 12.0 million paid, it is 16.50 million.- The cross-term: 7.35 million that belongs to growth and re-rating at once, and how to state the convention before a buyer's diligence team does.Tools includedA 100-day plan outline, a value creation plan template with KPI dashboard headings, twenty practitioner interview questions and a glossary of value creation terms.Contents in briefThe operating partner role; how private equity really makes money; commercial due diligence and the value creation plan; the first 100 days; revenue growth and commercial excellence; margin expansion; pricing, procurement and working capital; talent and organizational change; digital, data and technology; buy-and-build and integration; governance and the board; measuring value creation and preparing for exit; your path and first 90 days.Part of The Private Markets Career Guides. Read next: The Growth Equity Investor, The Private Equity Fund Controller Playbook, The Private Credit Investor.Educational content. All examples are fictional; not investment advice.