September 12, 2022
Alvarez & Marsal’s (A&M’s) Private Equity Performance Improvement group is pleased to share the results of its 2022 Private Equity Operating Partner Report. This report analyzes trends and best practices related to talent, services provided to portfolio companies as well as the strategies that are employed to develop operating team capabilities.
Select key findings from the report include:
Most participants indicated their intention to grow their operating groups, with more than half expecting to grow by at least 50% over the next two years with a focus on building in-house capabilities around cyber security, followed by ESG and diversity and inclusion.
Experience counts in PE operations groups, with more than 50% of operating partners and professionals having more than 15 years of experience.
88% of operating teams use the same operating partners in the diligence as the performance improvement implementation
Effective operating models and teams are critical to driving PE fund and portfolio company performance. Our study shows that private equity firms are building operating models that are aligned with market drivers as well as the issues of greatest urgency to their portfolio companies.