Introduction
Private-equity investors have never faced a busier agenda. Deal supply may be cooling, but margin pressure, rising debt costs, and higher buyer scrutiny mean value creation must start on day one and show results inside eighteen months. That reality has put the role of the operating partner firmly in the spotlight.
Yet “operating partner” now covers everyone from former CEOs on a part-time retainer to advisory boutiques selling implementation decks. Capability, sector fit, and accountability vary wildly. Pick the wrong match and your fund adds cost, misses growth windows, and risks under-performing LP expectations. Choose well and you gain a hands-on ally who can de-risk diligence, lift EBITDA, and professionalise the portfolio.
This article sets out a practical, evidence-based checklist for selecting the right operating partner in private equity. It draws on eComplete’s experience scaling consumer and digital brands for more than a decade, including forty transactions and over one billion pounds of ecommerce revenue. Use it to audit current relationships, benchmark new candidates, and align chosen partners with your fund’s investment thesis.
Define Success Before You Screen
Operating support fails most often because the fund and partner never agree what “good” looks like. Before issuing an RFP or taking first meetings, map three fundamentals:
|
Question |
Why It Matters |
Sample Fund Answer |
|
What stage and sector dominate your pipeline? |
B2B SaaS turnarounds need different playbooks to growth-stage DTC |
Mid-market consumer, 5–15 m EBITDA |
|
Which value-creation levers recur in deals? |
Clarifies core skill gaps—pricing, supply chain, international |
CAC compression, working-capital release |
|
How quickly must results appear? |
Dictates operating cadence and resourcing model |
100-day plan, measurable uplift by month 6 |
Operator insight
Treat the exercise like a management-team gap analysis. If 70 percent of your pipeline relies on digital acquisition and cross-border fulfilment, hunting for a Six Sigma specialist will mis-fire. Map need first, then shop.
Screening Framework: Eight Non-Negotiables
The table below summarises the criteria we use internally when funds ask eComplete to benchmark alternative operating partners. Score each candidate one to five; any sub-three score signals risk.
|
Criterion |
Evidence to Request |
Guidance on Best-in-Class |
|
Sector track record |
Case studies with measurable EBITDA or cash improvement |
>3 exits in target sector with audited uplifts |
|
Operator, not advisor |
P&L ownership, hiring decisions, supplier negotiation |
Incentive tied to contribution margin, not slide deck |
|
Data-platform capability |
Demo of dashboards, KPI cadence, drill-down granularity |
LTV:CAC, cohort ROI, SKU margin visible in one click |
|
Embedded talent bench |
CVs of interim C-level, functional leads, rollout timetable |
Names, start dates, cost per head |
|
International expansion credentials |
Duty-paid shipping model, local marketing case, cost per parcel |
At least five markets live for one brand in 24 months |
|
Supply-chain optimisation |
Pick-pack benchmarking, freight renegotiations, cost per order |
≥1.5 pp gross-margin gain within twelve months |
|
Working-capital discipline |
Stock-health reporting, add-back policy, cash-conversion cycle |
<100 days inventory, add-backs audited pre exit |
|
Alignment model |
Fee vs carry, claw-backs, performance triggers |
Variable fee tied to KPI delivery and exit value |
“We interview operating partners the way we interview CFOs. If they cannot walk us through a contribution-margin bridge by SKU and channel, they are not ready for a 100-day plan.”
Investment Director, UK mid-market fund
Diagnosis Tools: Ask for a Live Demo, Not a Pitch Deck
PowerPoint performance looks convincing in a beauty parade, but results hinge on live tooling. Require each shortlisted partner to walk your deal team through:
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Real dashboard (anonymised) showing last month’s revenue, media spend, and SKU margin.
-
First-order profitability calculator including discount impact and fulfilment cost-to-serve.
-
International P&L demonstrating duty, tax, and last-mile cost lines.
-
Working-capital tracker with automatic add-back classification.
If screens start buffering, data sources cannot be explained, or metrics sit in separate files, keep searching.
Fit for Purpose: Matching Partner Type to Fund Strategy
|
Fund Strategy |
Ideal Operating-Partner Profile |
Why the Fit Works |
|
Platform build-and-buy in consumer |
Full-service operator with M&A, integration, and supply chain |
Combines synergy modelling and post-merger execution |
|
Turnaround of single asset |
Lean squad of restructuring CFO, trading lead, and FP&A analyst |
Cash control and quick margin rescue |
|
Growth equity in digital brands |
Data-heavy marketing and retention experts with LTV-cohort tools |
Proves scalability and supports next round |
|
Cross-border roll-out |
Local fulfilment network, regulatory playbooks, multilingual talent |
Reduces tax risk and speed-to-launch |
Case study
A European PE fund bought a hair-care brand with 12 m EBITDA. The investment memo assumed Germany and US launches within year one. The original advisor lacked duty-paid shipping capability, delaying go-live six months and inflating customs costs by four pounds per parcel. The fund switched to an operator with existing EU and US hubs; launch completed in ninety days, saving 2.50 per parcel and adding £1.1 m incremental margin.
Due-Diligence Alignment Checklist
Operating partners should influence diligence before completion. Use this checklist to test integration readiness:
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Commercial due-diligence questions drafted by operator
-
Operator present at management-presentation Q&A
-
Dry-run of 100-day plan costed and scheduled
-
Talent-bench availability confirmed for close +15 days
-
Data integration pathway mapped (e.g. Shopify → BigQuery)
-
Working-capital adjustment model agreed with buy-side
Funds that involve operators pre-signing report 25 percent fewer post-closing adjustments and faster drawdown of value-creation budget (Bain PE Report 2024).
Governance and Incentives: Build Aligned Accountability
A high-quality operating partner embraces scorecards and downside risk. Typical structures include:
|
Mechanism |
Purpose |
eComplete Best Practice Example |
|
Variable fee linked to KPI uplift |
Rewards delivery, caps downside |
30 percent of fee paid only if margin + reps target hit |
|
Warrants or profit-share |
Aligns exit timing and value |
Warrants vest pro rata above pre-agreed EBITDA |
|
Claw-back clause |
Protects fund if early wins reverse |
20 percent fee claw-back if KPIs fall for two quarters |
|
Quarterly operating committee |
Faster issue escalation |
Data pack circulated 72 hours pre-meeting |
If a partner resists variable fees or data-driven governance, treat it as a red flag.
Why eComplete Matches Mid-Market Consumer and DTC Funds
eComplete was built by operators who scaled and exited their own brands. We now apply that playbook to help funds unlock value across supply chain, data, and digital marketing. Our positioning:
|
Capability |
Proof |
|
Operator-led |
Founders exited £250m DTC brand; team holds P&L targets |
|
Data platform |
Benchmarks 500+ metrics: LTV:CAC, fulfilment cost-to-serve |
|
Embedded talent |
80 staff covering trading, supply chain, FP&A, and UX |
|
International infrastructure |
Fulfilment hubs in UK, EU, US; tax simulator and duty-paid checkout |
|
Track record |
Raised own-brand participation at CurrentBody from 30 percent to 90 percent, adding 8 pp gross margin |
Funds choose eComplete when:
-
Portfolios contain consumer or digital brands between £5m and £25m EBITDA
-
Growth depends on online acquisition, retention, and international rollout
-
Value creation needs to show inside twelve months, not the third annual review
Conclusion
Selecting an operating partner is now as critical as choosing a lender. Use the framework below to de-risk selection and align incentives:
-
Define fund needs – sector, value levers, timing
-
Score candidates on eight non-negotiables – data, talent, supply chain, alignment
-
Demand live tooling demos – dashboards over decks
-
Match partner type to deal strategy – platform, growth equity, turnaround
-
Embed partner in diligence – model 100-day plan before signing
-
Align incentives and governance – variable fees, claw-backs, operating committee
Operating support done well releases cash, protects margin, and lifts exit multiples. Done poorly, it clogs calendars and dilutes returns. Choose wisely.
We work with funds looking to level-up execution across their portfolio. Is your fund one of them?
