The Rise of the Operating Partner
Why this role is now mission-critical in infrastructure private equity Mar 31, 2025As infrastructure private equity adapts to a more complex and capital-intensive world, the spotlight is shifting away from the traditional dealmaker. In their place, a more hands-on figure has emerged: the operating partner
Once viewed as a peripheral player, the operating partner is now recognised as a strategic asset. Like the master builder who turns an architect’s vision into a tangible structure, these professionals are central to translating bold investment theses into enduring performance.
They are the ones either on the ground, turning spreadsheets into strategy and strategy into sustained value or providing invaluable real-world support to investment boards on how to grow the business.
From financial engineering to functional execution
In the past, value creation in private equity was often driven by financial alchemy – buy low, leverage heavily, and sell high.
That formula, however, is showing its age.
“Interest rates are higher, and asset valuations have risen,” says Pav Lamba, Senior Director of Asset Management at CBRE Investment Management (CBRE IM). “The days of buying low, leveraging with high debt, and selling high are largely over – not just for traditional private equity, but also for infrastructure private equity.”
As investors move from core infrastructure into more dynamic and risk-adjusted core plus or value-add assets, operational excellence has become essential.
“These assets often have private equity-like characteristics,” Lamba explains. “They may be monopolistic but still have competitive pressures. These assets need to operate efficiently, grow strategically, and mitigate risks effectively.”
A shift in mindset – and skillset
This new reality has redefined the operating partner’s role. No longer a post-deal fixer, the operating partner is now a critical voice in the investment process – often involved from initial due diligence through to final exit.
One executive who embodies this evolution is Wessel Schevernels, Operating Partner at PATRIZIA. His career spans continents and sectors, from oil and gas in the Middle East and Asia, to commercial logistics in Rotterdam and Hamburg.
“I’ve always been drawn to the complexities of managing physical assets,” he says. “My background in economics allowed me to challenge assumptions and apply financial insights to operational realities, creating value beyond just the P&L and balance sheet.”
His transition from industry executive to operating partner was catalysed a decade ago, when a search firm recruited him to join Whitehelm Capital, then one of the most experienced infrastructure managers in Europe.
“When I joined Whitehelm, the firm was already planning a shift from separate managed accounts to proprietary capital,” Schevernels recalls. “We established two fund series – one focused on digital infrastructure and another on Pan-European infrastructure – ensuring that investment strategies were deeply rooted in operational execution.”
As part of a listed €60 billion real asset investment manager, Wessel now leads value creation initiatives within PATRIZIA’s infrastructure division, leveraging his expertise to steer portfolio companies toward long-term growth.
Value creation takes centre stage
Today’s market dynamics demand a different playbook. “The start of this decade has been rocky,” Schevernels says.
“We’ve seen lingering effects from the COVID-19 pandemic, macroeconomic shifts impacting GDP, and geopolitical changes influencing trade policies. The result? More challenging fundraising conditions, reduced deal flow, and a shift in focus from exits to value creation within assets.”
With holding periods extending and deal volumes slowing, organic growth is becoming the primary lever for returns. “It’s no longer just about financial engineering,” he notes.
“We’re focusing on operational improvements - getting our boots on the ground and working closely with portfolio companies to drive efficiency and resilience.”
This hands-on approach is particularly critical in the mid-market, where PATRIZIA specialises in bilateral deals with founder-led businesses. “These companies often require institutional capital for the first time,” Schevernels explains.
“That means we’re not just investors – we’re partners in scaling them to the next level.”
A new kind of team
To deliver on this mandate, firms are evolving their internal structures. At CBRE IM, Lamba describes a hybrid model that pairs in-house asset management teams – comprising former consultants and investment professionals – with external top class operating partners, often former CEOs who provide greater domain-specific expertise.
“We then complement our internal team with external senior advisers – operating partners – who provide additional guidance to our portfolio companies,” Lamba says. “For example, we might engage an ex-CEO from the transport sector to advise our European transport companies.”
PATRIZIA has taken a similar route, expanding its operating partner bench with sector specialists. “We’ve brought in experts from industries like telecommunications to support our digital infrastructure investments,” says Schevernels.
“We’ve also hired directly from our portfolio companies. People who understand the day-to-day challenges of running an organisation bring invaluable insights into the investment process.”
And increasingly, those insights include sustainability.
ESG embedded by design
As ESG expectations continue to rise, operating partners are being asked to embed sustainability into the DNA of portfolio companies – not as a compliance exercise, but as a driver of value.
“We have an operating partner solely focused on sustainable transformation,” Schevernels shares. “Rather than treating ESG as a series of checkboxes, we take a holistic approach – integrating sustainability across environmental, social, and governance dimensions.”
This shift reflects a growing recognition that ESG performance can enhance resilience, drive innovation, and deepen stakeholder trust. And in today’s investment landscape, those outcomes are non-negotiable.
Building for the long haul
Both Lamba and Schevernels agree that the operating partner role is only becoming more vital.
According to a 2023 PwC study, 77% of private equity firms cited operational expertise as critical to achieving their investment goals.
“Looking ahead, operating partners will be even more embedded in portfolio companies,” Schevernels predicts. “With longer holding periods, the focus will be on operational improvements rather than financial manoeuvres.”
The ability to transfer insights across sectors is also becoming a hallmark of effective operators. “When we recently invested in EV charging infrastructure in Germany, we saw striking similarities with our fibre networks in the US,” Schevernels recalls.
“The rollout challenges, permitting, supplier contracting, risk management – they were nearly identical. That’s why we seek people who can transfer skills across industries, rather than being confined to a single sector.”
The talent equation
The growing complexity of the role also makes talent sourcing more strategic.
“If you work with the right search firm, as we are currently, it’s relatively straightforward,” says Lamba. “Trying to source talent independently is more challenging, but using the right firm streamlines the process significantly.”
“How each private equity firm structures its approach varies, but mid-market infrastructure firms are increasingly building out internal teams and utilising external advisers," Lamba observes.
For executive search specialists, the rise of the operating partner presents both challenge and opportunity. The most effective candidates must blend technical, cultural, and strategic fluency – able to drive transformation while building trust across teams and geographies.
“The role of the operating partner is constantly evolving,” Schevernels reflects. “We’re no longer just overseeing investments from a distance. We’re deeply engaged in shaping businesses, ensuring they are resilient, sustainable, and poised for long-term success.”
It is a fast-paced, multifaceted role- part strategist, part mentor, part operator. And for those equipped to thrive in it, the rewards are tangible.
As the infrastructure sector moves into a new era of complexity and accountability, the spotlight may finally rest on the master builders who make long-term value not just possible – but inevitable.
The GIIA View: Jon Phillips, CEO
Jon Phillips, CEO of the Global Infrastructure Investor Association (GIIA), says: "Once peripheral, today’s operating partners are embedded across the lifecycle of investments, responsible not only for executing strategy but for shaping it. This shift signals a broader realignment, from returns driven by financial engineering to those rooted in real-world performance and sustainable growth.
“We are seeing a growing spectrum of styles and structures for delivering operational value. The recent perspectives from firms like CBRE IM and PATRIZIA illustrate this evolution clearly.
“With ESG now hardwired into capital mandates, operating partners are also being asked to lead on environmental stewardship, social impact, and governance resilience.
“At GIIA, we’ve seen this shift reflected in the rising share of ESG-led infrastructure fundraising and the increasing demand from our members for strategic tools to embed sustainability across portfolios. Operating partners are no longer just custodians of performance, they are agents of transformation.
“So, the message to global investors is clear: operational expertise is not a nice-to-have; it is the engine of value in an era of longer hold periods, geopolitical volatility, and heightened accountability.
“Those who attract and empower the right operating partners will be best positioned to deliver resilient, future-ready infrastructure – the kind the world needs most.”
THE TALENT POINT OF VIEW
The Talent Equation: Granger Reis POV
For investors navigating infrastructure's next era, talent isn't just a lever for value creation – it is the value.
As Craig Davidge, Co-Head of Real Assets, said: "Mid-market infrastructure investors are in a tough spot when it comes to finding the right operating partners. These businesses are often fast-moving, founder-led, and facing a unique set of operational and strategic challenges, which means the people leading them need to wear a lot of hats.
"It’s not just about technical know-how or sector experience. The best candidates are the ones who can bring a thoughtful, hands-on approach to operational delivery while also seeing the bigger picture.
"They know how to work across different sectors and regions, bring ESG thinking into the heart of decision-making, and, crucially, they can build strong relationships with the existing team. That kind of cultural fit and leadership presence is hard to teach - and even harder to find.
"The reality is, the talent pool for these roles is limited. The individuals need to be able to move between the day-to-day detail and the long-term strategy with ease. They also need the kind of soft skills that help them build trust fast and get things done in complex environments.
"At Granger Reis, we’ve seen how valuable it is for investors to have the right people in place, not just for immediate results, but for long-term value creation. That’s why building a strong, forward-looking talent pipeline isn’t just important, it’s essential."
From a talent perspective, the opportunity is equally compelling.
As Pierre Bretin, Principal in Real Assets at Granger Reis, explains, "Infrastructure GPs are shifting to a model that was previously a staple of private equity buyout firms, meaning clients are increasingly looking to Operating Partners for help navigating origination and value creation.
"From a talent perspective, we're seeing interest in experienced leaders from specific sectors, such as digital infrastructure or transport, to lead transformation initiatives, increase operational excellence and to keep major CapEx projects on time and within budget.
"We find that former C-suite executives from industry add depth to existing investment and asset management teams. For an experienced leader, it offers them the opportunity to step into an investor and share their experience with the team as Operating Partners are in the privileged position of sitting within the investor whilst working closely with specific assets.
"Beyond sector specific expertise, former consultants who specialise in turnaround strategies or functional leads with experience in areas such as finance or organisational design are in demand".
IN SUMMARY:
Top five insights for private equity firms and operating partners
The evolving role of operating partners in infrastructure private equity
As infrastructure investments grow more complex, the role of the operating partner has shifted from a supporting act to a central, strategic figure.
Here are five key considerations for private equity (PE) firms and operating partners:
1. Embed operational strategy early
Operating partners are now involved throughout the entire investment lifecycle, from due diligence to exit. Their input from day one ensures operational realities help shape smarter, more strategic investment decisions. (Source: PwC)
2. Look for versatile experience
The most effective operators aren’t limited to one industry. The challenges in rolling out EV charging points in Germany may closely mirror fibre network expansion in the US. Cross-sector insight is increasingly valuable.
3. Make ESG a driver of value
Environmental, social and governance (ESG) factors are no longer just about compliance. More than 80% of private equity leaders say ESG played a central role in at least one recent deal. Operating partners need to embed sustainability into business models to build resilience, spark innovation, and create lasting value. (Source: CFA Institute)
4. Build hybrid, collaborative teams
The best results come from blending in-house asset managers with external specialists – often former CEOs with deep sector knowledge. These hybrid teams bring both strategic clarity and execution muscle. (Source: PwC)
5. Tell your transformation story
If you're an operating partner updating your CV, go beyond job titles. Showcase the results you've driven – operational improvements, sustainable growth, cultural change. Make your impact clear and compelling.
As the focus in private equity shifts from financial engineering to hands-on value creation, operating partners are becoming the builders of long-term success.
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