How operating partners can demonstrate strategic value creation

By Stephan Keese and Barry Neal

Private equity investors today expect more than quick fixes. They want confidence that every operational move adds to long-term value. This was the main topic at the PEI Operating Partners Forum in New York, where industry leaders met in Q4 2025 to share strategies for building trust and alignment with investment partners.

Actual value creation isn’t about firefighting; it’s about clarity, trust, and confidence. The operating partner’s role is to make investors’ lives easier by delivering what they value most: time, transparency, and reassurance.

From reactive to strategic

Operating partners face a dual challenge: achieving operational excellence while navigating market volatility. Successful firms understand that success relies on proactive planning, disciplined execution, and flexibility. Instead of merely reacting to issues, operating partners must build resilience into their operations and demonstrate that every decision aligns with a broader strategic plan.

Transparency is essential to this approach. Investors dislike surprises; they want clarity. That means sharing key performance indicators (KPIs) that matter, honoring commitments, and keeping consistent communication between management and operators. Communication should be structured and regular, creating a rhythm that builds confidence over time.

Making impact visible

Value creation isn't just about doing the work; it’s about showing its impact. Every initiative should directly connect to measurable financial results. Whether it's improving margins, speeding up pipeline development, or integrating add-on acquisitions, the link between actions and results must be clear. This disciplined approach shows foresight and accountability—traits that reassure investors even during turbulent markets .

The language of confidence

How operating partners communicate can be as important as what they deliver. Investors value clarity and logic, so complex operational details need to be translated into understandable language.

A “show and tell” approach, demonstrating progress clearly and simply, can make all the difference. When unexpected challenges come up, structure should replace emotion: “Here’s the plan. Here’s what we’re doing now. Here’s the timeline. I’ve got this.” Calm, rational responses build trust and strengthen credibility, even under pressure.

Managing relationships and constructive tension

Working effectively with investment partners requires more than just regular updates. It involves proactive engagement and a willingness to openly address conflicts. Delays should be clearly explained, costs must be quantified, and strategies for mitigation should be outlined. Bringing in outside expertise when needed demonstrates professionalism, not weakness.

Constructive tension can be beneficial by challenging assumptions without damaging confidence. Success depends on early alignment around a common plan and fostering shared ownership between management and investors.

Turning volatility into opportunity

Ultimately, value creation relies as much on trust and communication as on operational excellence. By emphasizing transparency, measurable impact, and strategic foresight, operating partners can turn uncertainty into opportunity and boost investor confidence. In a world where volatility is the norm, those who prioritize clarity and alignment will not just survive—they will lead.

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