Operating Partner Books for PE & VC Career Growth

The Role of Reading in an Operating Partner’s Success

The Operating Partner role is a unique and critical one in private equity and venture capital.

Unlike other partners focused on deal-making and fundraising, Operating Partners dive into the portfolio companies, working hands-on to boost their growth and value.

As Kevin Desai, Partner at PwC, observes, “We are now surrounding our financial-minded quants, who are the historical engine of private equity, with really smart operators, some of whom have done digital transformation at large-scale corporations.”

Given the role’s complexity and increasing need for diverse expertise, staying sharp and well-informed is crucial. For Operating Partners, that means continuously building expertise in everything from leadership to financial strategy.

Reading the right books can be one of the best ways to develop this expertise.

Not only does it provide fresh perspectives on operational challenges, but it also helps Operating Partners stay up to date on the latest strategies and trends in the industry. Each book is an opportunity to pick up actionable insights, rethink common approaches, and even uncover new ways to approach familiar challenges.

For aspiring Operating Partners, reading is a way to fast-track key skills and understand what the role entails, and for seasoned Operating Partners, it’s a way to stay ahead and continue adding value.

In this article, we’ll dive into some of the best books for Operating Partners, providing insights that can help with decision-making, leadership, and achieving long-term success in PE and VC.

Top Books Every Operating Partner Should Read

According to CB Insights, only about 25% of venture-backed startups return capital to investors, though some say even this figure is optimistic. More realistic success rates are closer to 8-10%, showing just how important Operating Partners are in creating value.

The books in this list offer practical skills and strategies to help drive success in these challenging conditions.

The Operating Partner Playbook: A Comprehensive Guide to Total Value Creation in Private Equity by Mohamad Chahine

Mohamad Chahine’s comprehensive guide reveals the crucial role of Operating Partners in private equity, emphasizing operational value creation through an innovative framework he calls the Merit-driven Value Management System (mVMS). Drawing on his extensive global experience, Chahine provides readers with a deep dive into the mechanics of private equity, from fund structures to valuation techniques. The book also tackles practical elements, including compensation structures, navigating partnerships, and managing operational risks, making it an essential read for those looking to enhance their approach to value creation.

• Key Focus: Operational value creation, partnership economics, and compensation structures
• Frameworks and Tools: Introduces mVMS, a system designed to optimize value in portfolio companies
• Best For: Both newcomers and experienced Operating Partners seeking actionable strategies

The Operating Partner in Private Equity, Vol 1 by Tony Ecock

In this volume, Tony Ecock compiles insights from top Operating Partners in premier private equity firms like KKR Capstone and Advent International. This executive-level book covers every stage of the value-creation cycle, from EBITDA growth strategies to the intricacies of cost management and team building. Featuring case studies and firsthand accounts, it serves as a valuable benchmarking tool for Operating Partners and General Partners aiming to build effective teams and optimize portfolio performance.

• Key Focus: Team building, operational due diligence, EBITDA growth, and operational excellence
• Frameworks and Tools: Real-world case studies and best practices from firms like KKR Capstone and Advent International
• Best For: Operating Partners looking to benchmark against industry standards

The Private Equity Playbook: Management’s Guide to Working with Private Equity by Adam Coffey

Adam Coffey’s accessible guide is perfect for those involved with private equity-backed companies. Based on two decades of experience leading PE-owned businesses, Coffey demystifies private equity fundamentals while offering strategies to maximize growth and manage company governance. Though not exclusive to Operating Partners, the book’s insights on due diligence, partnership building, and growth strategies are invaluable for those navigating the private equity landscape.

• Key Focus: Due diligence, partnership selection, and growth strategies
• Frameworks and Tools: Practical steps for managing PE relationships and maximizing company growth
• Best For: Operating Partners working closely with management teams to drive value

Inside Private Equity: The Professional Investor’s Handbook by James M. Kocis et al.

This foundational handbook clarifies the core principles of private equity with a focus on demystifying metrics and valuation techniques that are often misunderstood. Kocis and co-authors make complex financial concepts accessible through clear examples, providing Operating Partners with the knowledge needed to evaluate investment returns and understand portfolio management more effectively.

• Key Focus: Private equity metrics, IRR, and valuation methodologies
• Frameworks and Tools: Real-world examples that simplify complex financial concepts
• Best For: Operating Partners seeking to build foundational PE knowledge

The Masters of Private Equity and Venture Capital by Robert Finkel and David Greising

Through interviews with some of the most successful investors in PE and VC, Finkel and Greising share high-level strategies that emphasize value creation, deal sourcing, and exit strategies. The book’s stories illustrate the real-world applications of these strategies, providing readers with insights into effective operational improvements and strategic investments.

• Key Focus: High-level strategies for value creation, deal sourcing, and exits
• Frameworks and Tools: Lessons from interviews with successful investors across industries
• Best For: Operating Partners interested in learning from seasoned investors

The Business of Venture Capital by Mahendra Ramsinghani

Ramsinghani’s guide to venture capital is a go-to resource for understanding fund structuring, value creation, and exit strategies within the VC space. While primarily aimed at venture capitalists, the book’s discussions on board governance, portfolio management, and due diligence are relevant for Operating Partners seeking to apply VC principles within private equity.

• Key Focus: Fund structuring, portfolio management, and exit strategies
• Frameworks and Tools: Interviews with top VCs that offer unique industry perspectives
• Best For: Operating Partners interested in applying VC insights within PE firms

Mastering Private Equity: Transformation via Venture Capital, Minority Investments, and Buyouts by Claudia Zeisberger, Michael Prahl, and Bowen White

This thorough guide from industry experts provides a structured look at private equity, covering the full lifecycle of transactions from deal sourcing to exit. Zeisberger and her co-authors distill complex PE topics, making the book an accessible reference for Operating Partners focused on transformation, value creation, and responsible investing within their portfolios.

• Key Focus: LBOs, growth equity, buyouts, and responsible investing
• Frameworks and Tools: Step-by-step guidance and frameworks for complex investment scenarios
• Best For: Operating Partners looking to understand the PE lifecycle from start to finish

Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation, and Documentation by Jason A. Scharfman

Scharfman’s book offers a detailed approach to conducting operational due diligence, an essential task for Operating Partners evaluating potential investments. With tools for assessing liquidity, financial documentation, and operational risks, this guide also includes case studies on operational fraud to illustrate potential pitfalls in PE and real estate investments.

• Key Focus: Due diligence components like fund documents, valuation, and liquidity
• Frameworks and Tools: Includes checklists, templates, and case studies in operational fraud
• Best For: Operating Partners responsible for assessing and optimizing portfolio performance

If you’re just getting started in this career path, you might find our guide on How to Get into Private Equity Operations useful.

How These Books Address Key Skills for Operating Partners

Having worked extensively with PE & VC firms, I often find that Operating Partners need to master several critical skills to deliver value, including leadership, operational strategy, and financial analysis. Here’s how these books support each skill:

1. Leadership and Team Management

Effective leadership is at the heart of the Operating Partner role, where guiding teams, influencing executives, and managing change are daily tasks. Books like The Operating Partner Playbook and The Private Equity Playbook emphasize leadership techniques tailored for PE-backed environments. These books offer actionable advice for building strong relationships with management teams, aligning stakeholders, and leading companies through critical growth phases.

2. Operational Strategy and Value Creation

Driving operational improvements and creating value are primary responsibilities for Operating Partners. The Operating Partner in Private Equity and Mastering Private Equity provide frameworks for enhancing EBITDA, optimizing processes, and implementing cost controls that directly impact the bottom line. Through case studies and examples, these books demonstrate strategies for transforming operations and implementing scalable processes that align with PE objectives.

3. Financial Analysis and Valuation

Understanding financial metrics and valuations is vital for assessing portfolio performance and making data-driven decisions. Inside Private Equity and Private Equity Operational Due Diligence are indispensable for learning key financial concepts such as IRR, liquidity assessment, and valuation methodologies. These resources simplify complex financial concepts, making them accessible for Operating Partners who need to evaluate the financial health and potential of their investments.

4. Due Diligence and Risk Assessment

In our 10+ years of working with investment firms, we’ve seen that involving Operating Partners in due diligence can significantly impact the post-deal phase. Private Equity Operational Due Diligence provides detailed tools for evaluating operational risks, including checklists and case studies on fraud detection. This book, alongside The Business of Venture Capital, offers insights into the due diligence processes that Operating Partners must master to ensure they’re making sound investments. Learn more about Operational Due Diligence.

5. Strategic Growth and Exits

In practice, we’ve found that Operating Partners are essential for strategic planning, often leading to smoother exits. The Masters of Private Equity and Venture Capital and The Operating Partner Playbook cover high-level strategies for sourcing deals, growing portfolio companies, and planning exit strategies. They highlight the experiences of top investors and provide readers with insights into navigating the exit phase—a skill central to achieving PE and VC success.

Each of these books offers tools and insights to help Operating Partners hone these critical skills, ultimately contributing to more effective value creation and portfolio management within the PE and VC landscape.

Reading Strategies for Operating Partners

For Operating Partners with limited time, a strategic reading approach can unlock valuable insights. Here are ways to make your reading efficient and directly applicable to your role.

Focus on Actionable Takeaways

Identify sections with high-impact, actionable insights rather than aiming to read cover-to-cover. Skim chapters that contain practical frameworks or examples, such as value-creation strategies in The Operating Partner Playbook.

Try this:

• Mark specific pages or passages to revisit later for quick reference.
• Jot down notes on immediate applications to reinforce learning.

Use Books as Reference Guides

Certain technical books, like Private Equity Operational Due Diligence, work well as reference materials. Pinpoint sections relevant to current challenges, such as valuation methods, and use them as on-demand resources.

Try this:

• Bookmark sections for easy access to specific tools or checklists.
• Treat these books like a toolkit, diving into relevant chapters when new challenges arise.

Apply Lessons to Real-World Scenarios

Reading about best practices is valuable, but applying them is crucial. For example, if you read a leadership strategy in The Private Equity Playbook, think of a current portfolio company where it might fit. Choose one or two to apply as a test and adjust as needed.

Try this:

• Start small by implementing insights in one or two companies.
• Track outcomes to refine how you tailor the book’s strategies.

Incorporate Reading into Routine Downtime

Finding dedicated reading time can be challenging, so leverage brief breaks during commutes or between meetings. E-books or audiobooks can be useful formats to absorb concepts on the go.

Try this:

• Aim for 10-15 minutes daily; it adds up over time.
• Use a mobile or e-reader app to make reading accessible anytime.

Prioritize Books Based on Current Needs

Focus on books that align with immediate priorities, such as operational efficiency or team leadership. For instance, if you’re focused on improving operational efficiency, tackle Mastering Private Equity or The Operating Partner in Private Equity.

Try this:

• Choose sections that address your most pressing responsibilities first.
• Reassess priorities monthly and rotate books or sections accordingly.

By focusing on actionable takeaways, using books as practical guides, and aligning reading with everyday routines, Operating Partners can efficiently integrate valuable insights into their roles.

Frequently Asked Questions

What skills can I expect to gain from reading these Operating Partner books?

These books cover essential skills for Operating Partners, including operational strategy, financial analysis, leadership, and value creation. Readers will gain practical insights on optimizing portfolio company performance, managing risk, and building effective relationships with management teams—skills crucial for success in PE and VC.

Are these books suitable for beginners in private equity and venture capital?

Yes! Many of these books are designed to be accessible to early-career professionals and provide foundational knowledge on private equity and venture capital. They break down complex concepts, making them suitable for beginners while also offering advanced strategies that benefit experienced readers.

How should I prioritize reading these books as an aspiring Operating Partner?

Focus first on books that align with your immediate learning goals, such as understanding private equity fundamentals or mastering operational strategies. You can start with one or two core books, then build from there by selecting titles that match specific skill areas or challenges you encounter in your career.

Next Steps: Integrating Book Insights into Your Role

Once you’ve begun to incorporate new ideas from your reading, the next challenge is to make these insights part of your ongoing approach as an Operating Partner. Here’s how to establish a continuous learning loop, ensuring that the knowledge from each book enhances your effectiveness over the long term.

Establish a Continuous Learning Framework: Create a system to track and revisit key takeaways from each book, updating strategies as you gain new insights or encounter changing business dynamics. For example, set up a simple tracker where you list impactful strategies alongside your reflections on how well they’ve worked over time.

Reflect and Refine Quarterly: At the end of each quarter, reflect on how the strategies you’ve implemented are working. Assess the measurable impact on portfolio companies and identify areas where additional refinement might be needed. Schedule quarterly review sessions to gauge what’s working, make adjustments, and set new priorities based on recent insights.

Leverage Insights to Inform Broader Strategies: Use key insights from your readings to shape broader operational strategies within your firm. For instance, if you find a method for boosting EBITDA particularly effective, consider sharing it across portfolio companies or integrating it into firm-wide best practices.

Stay Updated with New Industry Knowledge: Make ongoing reading and knowledge-building a regular part of your professional development. Set aside time to periodically read new books or articles related to emerging trends in PE and VC, ensuring you remain responsive to industry shifts. Keep a reading list and dedicate small blocks of time each month to new material, focusing on books that address evolving challenges in PE and VC. If you’re looking for curated reading material to keep up with industry trends, consider our list of Operating Partner Newsletters.

Focusing on long-term application, regular review, and continuous learning can help keep each book’s insights fresh and valuable, enhancing your role as an Operating Partner over time.