The Ultimate Guide to Operating Partner Salary and Compensation

Operating partner salaries can vary widely, but a common range is between $200,000 and $500,000 per year. This range can depend on factors such as the size and type of the firm, the partner's level of experience, and the specific role they are playing.

Typically, operating partners with more experience and a stronger track record of success can command higher salaries. In fact, some experienced operating partners can earn upwards of $1 million per year.

A unique perspective: Operating Partner Job Description

A value creation team is a specialized group of professionals within a private equity firm dedicated to improving the operational efficiency and profitability of its investments. This team typically includes operating partners and other specialists in areas such as finance, marketing, technology, and human resources.

The main goal of a value creation team is to increase the value of portfolio companies. By utilizing their industry knowledge and practical experience, they ensure that portfolio companies not only meet but exceed performance expectations.

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A value creation team is not a "back or middle-office job", as some people claim. However, it is still a rung or two below the deal team in terms of perception and compensation.

The team's work is crucial, as operational improvements can improve deals and boost returns. But, they're not necessarily required, and the deal team will always be viewed as "more important."

Here's a rough idea of the hierarchy in a value creation team:

Private equity operating partners and value creation teams can earn a competitive base salary, with operating partners averaging around $600,000 per year.

Their total compensation can also include performance-based bonuses, which can range from 20% to 100% of the base salary, depending on the achievement of specific goals and milestones.

In addition to bonuses, operating partners and value creation teams may receive carried interest, which is a share of the profits generated by the firm's investments, typically ranging from 1% to 3% of the profits.

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Here's a rough idea of the compensation hierarchy for value creation careers:

Value creation careers can offer better hours and travel opportunities compared to standard PE or consulting roles, but may not have a clear path to advancement to the Operating Partner level.

Private equity operating partners and value creation team members generally receive a competitive base salary that reflects their extensive experience and the value they bring to the portfolio companies, with operating partners averaging around $600,000 per year.

Their base salary can be up to $300,000 for a value creation associate, depending on the PE firm and the individual's qualifications.

In addition to their base salary, these professionals often earn performance-based bonuses, which can range from 20% to 100% of the base salary, depending on the achievement of specific goals and milestones.

These bonuses can significantly increase total compensation, making private equity value creation careers a lucrative option for those in the industry.

Here's a rough breakdown of what you can expect in terms of salaries and bonuses:

Keep in mind that these figures are estimates and can vary depending on the firm size and individual performance.

It's also worth noting that not all firms have strictly defined hierarchies for the value creation team, so these specific titles may not always be used.

If you're looking to boost your salary as an operating partner, consider moving to Virginia, New York, or New Jersey - these states offer the highest average operating partner salaries.

The top-paying cities for operating partners are New York, NY, Richmond, VA, and Washington, DC, with New York, NY leading the pack with an average salary of $138,484.

Here are the top 5 states with the highest average operating partner salaries:

If you're looking for a specific city to move to, consider New York, NY, Richmond, VA, or Washington, DC, which are among the top-paying cities for operating partners.

In terms of hourly rate, the top 5 states are Virginia, New York, Michigan, Ohio, and North Carolina, with Virginia leading the way at $64.17 per hour.

Here are the top 5 cities with the highest average operating partner salaries:

Operating partner salaries can vary widely based on factors like firm size, experience, and location. A competitive base salary for operating partners averages around $600,000 per year, according to a report by Heidrick.

Bonuses and carried interest are also key components of operating partner compensation. Annual bonuses can range from 20% to 100% of the base salary, and carried interest typically ranges from 1% to 3% of the profits.

Here are some average salary ranges for operating partners:

The average hourly rate for operating partners is $44.76 per hour, and salaries can range between $55,000 and $156,000 yearly.

An operating partner's salary can vary widely, but on average, it's around $93,101 per year in the United States. This range can be as low as $55,000 and as high as $156,000 yearly.

Their salary is impacted by location, with operating partners earning the highest average salary in Virginia. The average hourly rate for operating partners is $44.76 per hour.

Operating partners with 0-2 years of experience earn an average entry-level salary of $38,347, while those with 7-12 years of experience can earn up to $107,385 per year.

Here's a breakdown of the average salary for operating partners based on experience level:

Keep in mind that these figures are averages and can vary depending on the specific company, industry, and location.

Value creation teams are a crucial part of private equity firms, dedicated to improving the operational efficiency and profitability of their investments.

Operating partners and value creation teams typically receive a combination of salary, bonuses, and carried interest, which is a share of the profits from successful investments.

According to a report by Heidrick, the salary for operating partners averages at around $600,000 per year, while a value creation associate can earn up to $300,000.

Bonuses can range from 20% to 100% of the base salary, depending on the achievement of specific goals and milestones.

Carried interest typically ranges from 1% to 3% of the profits, but this can vary based on the firm's policies and the operating partner's level of involvement.

Here's a rough idea of what value creation team salaries and bonuses might look like at a mid-sized fund:

Keep in mind that these are general estimates and can vary widely based on the firm and individual qualifications.

As a value creation team member, you can expect a 10 – 20% discount on traditional private equity salaries and bonuses.

You'll typically work normal hours, around 50-60 per week, and travel less than in consulting roles.

The main collective goal of an operating partner and a value creation team is to increase the value of portfolio companies, utilizing their industry knowledge and practical experience to ensure successful exits and substantial returns for investors.

Operating partners in private equity firms can earn a competitive base salary, with an average of around $600,000 per year. This figure can vary depending on the size and success of the PE firm, as well as the individual's experience and qualifications.

According to a report by Heidrick, the salary for operating partners has risen by $7,635 over the last ten years, with the average operating partner earning $93,101 a year in 2024. This represents a 4% change in pay over the last decade.

Operating partner salaries can also vary depending on the location, with some cities or states offering higher or lower salaries than the national average. For example, a Principal Operational Excellence Partner at Genentech in Oceanside, CA earned $141,190 in 2023, while a Junior Operating Partner at Domino's Franchise in Lakewood, CO earned $46,660.

Here are some average operating partner salaries for different roles:

Note that these figures are based on data from 2024 and may not reflect current salaries.

The average operating partner salary varies significantly across the United States. In the top-paying states, operating partners can earn upwards of $130,000 per year.

Virginia takes the top spot with an average operating partner salary of $133,465, followed closely by New York at $133,351. These figures are significantly higher than the national average, making them attractive destinations for operating partners.

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The lowest-paying states for operating partners are Hawaii, North Dakota, and Arkansas, with average salaries ranging from $63,026 to $64,565.

Here's a breakdown of the top 5 and bottom 5 states for average operating partner salary:

In contrast, the lowest-paying states offer significantly lower salaries, with Hawaii and North Dakota offering average salaries of $64,565 and $64,451, respectively.

If you're looking at salary trends for private equity professionals, here's what you need to know: as of 2024, mid-sized fund salaries for associates range from $200 to $300K.

The average operating partner salary has seen a 4% change in pay over the last decade, rising by $7,635. This translates to an increase from $85,466 in 2014 to $93,101 in 2024.

Private equity professionals can expect a 10-20% discount on traditional salaries and bonuses, depending on the firm size. This means a VP at a mid-sized fund can earn around $500K.

Here's a rough breakdown of private equity salaries and bonuses at a mid-sized fund as of 2024:

Operating partners in private equity firms can earn a competitive base salary, with figures ranging from $55,000 to $156,000 per year, depending on their experience and the firm's size.

A report by Heidrick found that the average salary for operating partners is around $600,000 per year, although this can vary widely. In some cases, operating partners may receive a base salary that reflects their extensive experience and the value they bring to the portfolio companies.

According to a report, private equity operating partners and value creation teams generally receive a competitive base salary that reflects their extensive experience and the value they bring to the portfolio companies.

Here's a rough breakdown of operating partner salaries based on the 10th and 90th percentiles: PercentileSalary10th$55,00090th$156,000

Operating partners may also receive bonuses tied to the success of the portfolio companies they support, which can significantly increase their total compensation. Annual bonuses can range from 20% to 100% of the base salary, depending on the achievement of specific goals and milestones.

In some cases, operating partners may receive equity stakes in the portfolio companies they work with, which means they can benefit directly from the appreciation in the value of these companies.

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The highest paying industries and companies for operating partners are a great place to start when considering a career in this field. According to our research, operating partners at Teradata and Meta earn the highest average salaries, with $140,602 and $139,944 respectively.

Teradata takes the top spot with an average salary of $140,602, followed closely by Meta at $139,944. These two companies are followed by Google and Airtable, which also offer highly competitive salaries.

Here is a list of the top 5 highest paying companies for operating partners:

If you're interested in exploring other industries, the hospitality industry offers the highest average operating partner salary, at $95,330. This is significantly higher than the average salary in the retail industry, which is the lowest at $85,814.

In a private equity firm, the value creation team is a specialized group of professionals dedicated to improving the operational efficiency and profitability of investments. This team typically includes operating partners and other specialists in areas such as finance, marketing, technology, and human resources.

The main goal of an operating partner and a value creation team is to increase the value of portfolio companies. By utilizing their industry knowledge and practical experience, they ensure that portfolio companies not only meet but exceed performance expectations.

Operating partners work closely with management teams of portfolio companies, providing guidance on crucial areas such as operational efficiency, growth strategies, and organizational development. This role is not a "back or middle-office job", but rather a specialized position that requires industry knowledge and practical experience.

The value creation team's roles and responsibilities can be broken down into several key areas:

Operating partners and value creation teams work together to ensure that portfolio companies meet and exceed performance expectations, ultimately leading to successful exits and substantial returns for investors.