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Private equity firms are under pressure from high interest rates, longer hold periods, and more complex portfolio operations. In response, fund managers are rethinking how they create value.
A recent PwC study found that more than 80% of private equity funds now rely on operating partners to drive transformation inside portfolio companies. Yet many small and mid-market funds lack the operating partner bench they need to succeed in challenging times.
That’s where interim and fractional executives come in.
The Rising Importance of Operating Partners in PE
Operating partners used to be focused on cost-cutting and efficiency. Today, according to PwC, they’re on point for digital transformation, ESG, and talent strategy, areas that require specialized, battle-tested leadership.
But what if your fund doesn’t have an internal team of operating partners? You don’t have to go without. On-demand private equity executives can be deployed quickly, providing the same skill set without the overhead of a permanent staff.
When Funds Don’t Have Their Own Bench
Traditionally, funds are built lean by design, with teams focused on sourcing and closing deals.
But once the ink is dry, PE owners need proven operators who can:
- Validate growth assumptions during diligence
- Lead post-close integration to prevent disruption
- Drive top-line growth or restructuring efforts
- Professionalize systems and teams to prepare for exit
Our vetted RED Team executives have stepped into portfolio companies countless times to fill this gap. As these six common scenarios show, interims can be the difference between missed expectations and successful outcomes.
Interim and Fractional Executives as On-Demand Operators
InterimExecs’ global network acts as a bench of on-demand operating partners:
- Speed: Leaders can be deployed in days, not months.
- Flexibility: No long-term commitments; engagements scale up or down.
- Experience: Many have taken companies from turnaround through growth to exit across multiple PE cycles.
Whether the challenge is stabilizing cash flow, executing a digital overhaul, or building leadership capacity, interims bring the same rigor as traditional operating partners—often with broader cross-industry experience.
Driving Value from Diligence Through Exit
The ultimate goal of every private equity investment is a profitable exit. Interim executives are uniquely wired to step in during uncertainty, bring stabilization, and drive toward value creation milestones.
RED Team interim executives don’t just advise from the sidelines, they lead from the inside. That means preparing portfolio companies for the best possible outcome, whether through IPO, strategic buyer, or secondary sale.
Why InterimExecs Is the Operating Partner Solution
Not every fund has the resources—or the need—to build out a full-time operating partner team. By tapping into InterimExecs, funds can access proven leaders who have successfully navigated turnarounds, integrations, expansions, and exits.
The takeaway: You don’t need an in-house bench to compete. You need the right executive at the right time.
Ready to add operator-level leadership to your fund’s portfolio companies? Call 847.849.2800 or Contact Us to start the conversation.
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