How do PE firms source operating partners?

Is anyone familiar with the process with how LMM/MM PE firms source operating partners? I know a good amount of it comes through networks and referrals, but am more curious on what people do when dealing in an unfamiliar industry where they don't have connections. Are there services or third-party operating partner networks that they tap into and does anyone know of any?  

5 Comments
 

Operating Partner here.....there are a couple of models depending on the type of operating role.   As you correctly state – networks and referrals are important. 

  1. The most common source is from execs that were in portfolio companies that the PE firm owned (especially if that portco was a good exit for the PE firm).
  2. Executive Recruiting firms – We get approached from recruiters that claim to specialize in Operating Partner recruitment.  The truth is that these firms are really just recruiters who specialize in recruiting for execs in PE owned companies and realize that in many cases, the skill set is the same, so they market that to the PE firm.
 

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