Recently was hit up by a head hunter for a PE Operations (non-buy side role). Coming from MBB this sounds interesting and I like their mix of portfolio companies. However, in looking at the Operating Partners, most of them tend to be ex MBB Partners or C-level execs. This begs the question, where do most of the Associates exit into (considering you won't make Operating Partner without other expierence)
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You are right to be concerned about a career-track operating partner position. For most funds, operating partners essentially act as shadow directors for portfolio companies. They sometimes step into the businesses in a senior executive role, but most of the time, they are senior advisers/consultants to the C-suite and BoD. The guys at KKR Capstone don't really want 'strategy' experience as much as they want operational expertise. I interviewed there years ago with the head of the group, and he really focused on the operational improvements I had made to any companies I had worked with as a consultant. As that wasn't really my background, we parted ways amicably. In their case, they have a structured progression through the ranks to eventually make partner. That's not the case for a lot of other firms.
Vista Equity Partners has a consulting group that works with their portfolio companies, but I believe they also do external client work as well. I think that model is interesting, but I can't think of another firm that utilizes it, so I'm not sure it's worth explaining.
Most firms have no use for junior staff in an operating capacity. You'd be too junior to take a leading position within a portfolio company of any meaningful size. Even if the portfolio companies were small(ish), dropping a 25-year-old into the executive ranks would rankle the staff. The reason for doing so can't be, "This kid is smarter and better pedigreed than you are, so we're going to have him look over your shoulder and report back to us when you fuck up." If you're in your early 30s and worked on half a dozen major projects, with some real bona fides under your belt, you might still be seen as a kid by the C-suite, but they're not going to dismiss you and your advice immediately if you're already proven yourself.
At a fund I know well, the operating partners are all quite senior, but not C-suite talent themselves. They tend to be turnaround experts given the nature of the fund. They split the equity pool between the upper management of the acquired firm and the operating partners at the fund (with the equity pool being between 2% and 12% or so of the overall equity in the firm depending on the size and value of the company).
At some firms, operating partners only participate in the upside of individual deals. At others, they participate in the wider carry pool. It really just depends on the firm, though I think the former arrangement is more common. I sincerely doubt that anyone below the principal level at a place like KKR Capstone receives any carry, though I'd be happy to be proven wrong.
As someone who has been in this role for a few years, I think there were a lot of good points made here. With that said, there are some items I would want to clarify. Since most funds are still building this role out, I think it comes in many different forms - so people should really try to understand what it is they will be doing. Many funds are still figuring it out, so probably not ideal for someone that is not good with ambiguity / uncertainty.
In regards to the senior management role, it is a tough one and something I struggle with currently. However, it does take a certain type of personality to get past it. I have been in this role for 3+ years and have both advised / partnered with C-level execs and have had the interim c-level title a few times myself (yes, I am under 30). It is tough, but very doable to pass that hurdle and be respected in that role.
To answer the OP, I think the career path here is very ambiguous. If you’re good enough, then you stay in this long term. As you interact with management teams and other c-level roles, a lot of them want to be in your seat - so this is the exit. I think it is also highly likely that you can land yourself in a VP or c-level role at a portco after a long stint. I have to assume you will be looked upon favorably for operational / strategy roles at big companies, but I think many will struggle to give up the autonomy for a more political / structured position.
Most people will pre-select themselves out of staying though. Similar to consulting, you are on the road constantly. I have actually travelled more in the past few years than I did in my RX consulting days. You also have a lot more pressure / stress since you are actually responsible for performance of the business and need to make actual decisions rather than recommendations.