What is PE operations?

My understanding of PE is that one would comb over CIMs, financial data, model out an LBO and if it passes an IRR threshold and a bunch of other qualities, it would be put of for consideration.

The above seems like a description of what people generally think of when they think of private equity (investment team i think).

How does that differ from someone working on the operations side? Do these people generally come from a BB IBD background as well and work intensively on analyzing financials/business models?

 
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No, definitely not. Typical ops background for a PE firm would be someone coming from an accounting background, such as working as a fund admin, or maybe a portfolio analyst. Ops tasks would be: setting up legal entities/spvs/funds, dealing with your auditors and accountants and tax people, working with the SEC, dealing with fund admins, various back-office cost measures and controls, potentially helping transfer assets by dealing with filling out paperwork and sub docs.

Not a glorious position and not really an investment team role. Pay is usually not great either unless you get really senior but you're always a cost centre.

 

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