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In partnership with I&S Adviser, we are publishing this white paper dedicated to the role of Operating Partners in France, an emerging profession that is playing an increasingly significant role for company directors in value creation projects. Entitled "The impact of Operating Partners on company directors", this white paper highlights the strong growth of the Operating Partner profession in France, in a rapidly changing economic context.
A relatively unknown position in France just ten years ago, the Operating Partner profession was born in the wake of the 2008 financial crisis. After the crisis, investment funds felt the need to call on the expertise of operational management professionals to secure the growth and performance of their investments, thus giving rise to the Operating Partner function.
In fact, according to the white paper produced by Deloitte and I&S Adviser, the Operating Partner profession is currently experiencing real growth in France, in line with the needs of companies and the uncertain economic climate. According to a study by France Invest, the number of Operating Partners in investment funds in France is expected to multiply by 2.3 between 2022 and 2023. As Deloitte and I&S Adviser explain, this strong growth is due in particular to the development of the private equity sector in the financing of company shareholdings.
The main reason for the current growth of the Operating Partner profession in France is the deleveraging phenomenon, which makes it necessary to create value at operational level. Accompanying a business leader at pivotal moments of development and structuring, an Operating Partner acts as a transmission belt and accelerator for teams, providing a better understanding of operational challenges, market dynamics, opportunities for improvement and the implementation of change. Laurent Jehanne, Managing Director, Deloitte Deal Transformation and Turnaround
Since 2020, the Operating Partner business has seen accelerated growth, in response to the new needs of companies to pursue their growth despite the tougher economic context (rising interest rates, inflation, cost of raw materials, etc.), and the increased risk of insolvency (+57,000 insolvencies expected in 2023). The Operating Partner business is also a response to the challenges posed by business transfers, which are becoming a major issue in France today.
The white paper highlights the protean nature of the Operating Partner's role. Operating Partners may be part of an investment fund, or act directly as freelancers, playing a major role in helping entrepreneurs develop and structure their projects. Their scope of action is wide-ranging and varies according to the assignment, and may include assisting a company with its growth plan, business transfers, recruitment, or advising on more specific segments such as IT as part of the digital transition, or extra-financial performance with the emergence of new ESG/RSE issues for managers.
The experts at Deloitte and I&S Adviser distinguish several types of Operating Partner. Firstly, Operating Partners working for investment funds have an average of ten years' professional experience in consulting firms or large and medium-sized companies. According to the white paper, 60% come from consulting firms, 40% have held various management positions within companies, and 15% are former CEOs.
Independent Operating Partners have an average of 20 years' professional experience. The report states that 100% of them have created and developed their own companies and/or held corporate offices in the past.
Whether they are in investment funds or independent, the report identifies three categories of Operating Partners present on the market today: generalists, functional experts and sector experts. This diversity of profiles should enable us to meet all the needs of organizations in their various growth strategies.
The results today prove it: Operating Partners play a fundamental role in very specific situations and on very specific subjects, and their intervention has become necessary to achieve the objectives set by the company. Far from being a fad or a "trendy" name for a consulting activity, their commitment and the value they create make them a "must-have" for many managers. Isabelle Saladin, President of I&S Adviser
