Private equity firms have spent years hiring operating partners without defining the role, creating organizational confusion dressed in expensive suits. Lee McCabe of Claymore Partners argues the title can mean anything from former CEOs to functional specialists, yet these individuals sit between the deal team and management with authority over neither. They are accountable for improvement but often cannot replace executives, approve budgets, or redirect resources, essentially becoming consultants with carry.

The macroeconomic tailwind that once masked operating inefficiencies has vanished. With debt more expensive and exits slower, the.