The private investment community
primarily consists of venture capital
(VC), private equity (PE) and family
office investment professionals.
Operating Partners align with all three,
but evolved from classic PE buyout
and turnaround firms that have control
Asia PE funds have trailed EU and
U.S. firms on deal flow, with smaller
transaction size and fewer control
investments – but that is changing.
VC and PE partnerships are typically
structured as ten year closed end
funds, not listed on public exchanges,
focusing on institutional investors.
PE fund managers are called general
partners (GPs), investors are referred
to as limited partners (LPs) bound by
a limited partnership agreement.
Operating Partners can be structured
at both the GP and portfolio company
levels, compensated along side both
management and performance fees.
Portfolio Investments depend upon
the fund’s strategic mandate, sector
focus and can include minority,
majority and/or outright acquisitions.
Operating Partners support upfront
deal due diligence, post-investment
integration, talent development and
operational value creation for exits.
Exits are the barometer of success.
A GP’s track record defines the
partnership’s ability to secure new
capital for future investment funds.