Operating Partners no Brasil (Spectra Investments)

Summary

• The study surveyed 19 private equity firms operating in Brazil, representing over $350 billion in combined assets under management.p.1
• Among the surveyed managers, 74% employ Operating Partners (OPs) in a value creation role and 52% as industry advisors.p.3
• Pre-deal involvement is common, with 68% of managers using OPs for due diligence and 58% using them for deal flow.p.3
• In the post-deal phase, 53% of firms place OPs on the board of directors and 53% use them for operational monitoring.p.4
• The average annual fixed compensation for an OP is R$ 690 mil, with median compensation at R$ 480 mil.p.2
• Most managers (89%) compensate OPs through a combination of fixed salary alongside bonuses, carry, or both.p.2
• Prior executive C-Level experience is the most valued background when hiring an OP, cited by 74% of respondents.p.7

Key insights

1. Foreign fund managers pay a significantly higher average annual fixed compensation (R$ 1.344 mil) compared to local managers (R$ 420 mil).p.2
2. While 84% of surveyed firms have at least one partner performing an operational role, three firms rely entirely on non-partner executives for OP functions.p.2
3. In post-deal scenarios, OPs typically receive compensation directly from the portfolio company rather than from the fund manager.p.5
4. Carry is offered to OPs by 79% of managers, with 80% of those managers basing carry on total fund performance rather than single deals.p.7
5. Bonus payments are provided by 42% of firms, averaging 13.8 times the monthly fixed salary.p.6
6. Management consulting experience is the second most valued background for hiring OPs, highlighted by 53% of surveyed managers.p.7
7. Only 30% of surveyed private equity managers hire external consulting firms to support the work of their OPs.p.2