NEWS

The Evolution of the Operating Partner: Strategic Value Creation in Real Estate and Digital Infrastructure

A Maturing Discipline

The operating partner role began as a tactical position focused on financial restructuring and operational efficiency, primarily used in turnaround scenarios to stabilise underperforming companies. By the mid-2010s, operating partners became more integral to value creation beyond financial engineering, with responsibilities expanding to include growth strategies, digital transformation, and talent management.

The data underscores this evolution decisively. Since 2010, according to PWC, 47% of value creation has come from operations, up from 18% in the 1980s. This shift has elevated operating partners from peripheral advisers to central architects of portfolio company performance.

Specialisation and Functional Expertise

Today’s operating partners increasingly bring deep functional expertise rather than purely generalist capabilities. Finance operating partners, many coming from FP&A, CFO, or audit backgrounds, bring deep understanding of private equity, M&A, and exits. They advise during diligence, guide integration, and ensure capital is deployed efficiently.  Operating partners provide crucial continuity during these transitions whilst maintaining momentum on value creation initiatives.

Technical Expertise in Digital Infrastructure

In sectors requiring sophisticated technical knowledge, the role has evolved considerably. Initially, many firms relied on external technology advisers for support. Over time, they hired seasoned technology leaders to work full-time as Technology Operating Partners, with firms beginning to build specialised teams covering areas like AI, digital, data, and cybersecurity.

This specialisation proves particularly critical in digital infrastructure. Funds are now underwriting data centre deals based not only on EBITDA multiples, but on the operator’s access to clean power, favourable utility rates, and infrastructure-ready land. Such assessments demand operating partners who understand power systems architecture, cooling infrastructure, and network topology alongside traditional financial metrics.

From Diligence Through Exit

During the due diligence phase, Operating Partners’ expertise is invaluable in assessing a target’s capabilities, infrastructure, and digital assets, not only identifying potential risks and opportunities but informing investment decisions by aligning the strategy with overarching business objectives.

The commercial imperative shapes their approach. There is a finite time period attached to any investment, and this must be taken into account by any leader when planning strategy and change.

Organisational Models

Leading firms have developed sophisticated structures to deploy operating expertise. Some firms maintain centralised teams that serve all portfolios across industries with cross-functional experts that can be assigned to any investment, whilst others engage external operating advisers who are seasoned former CEOs and sector specialists engaged on a contractual basis.

In our experience advising both general partners and limited partners, the most successful firms integrate operating capabilities early in the investment thesis rather than viewing them as post-acquisition resources. The operating partner has evolved from a novel concept into an essential driver of returns—particularly in sectors where technical expertise and operational excellence determine success.

For firms in real estate and digital infrastructure, securing operating talent with the right blend of commercial acumen and technical depth increasingly represents a genuine competitive advantage.