A comprehensive guide to the operating partners of the leading private equity firms
Historical Evolution
American Securities, a U.S. middle-market private equity firm, began developing its operating partner capabilities in the early 2000s as part of a shift toward an “industrial approach” to value creation. The firm (which traces its roots to 1947) traditionally partnered with strong management teams, but by the mid-2000s it saw opportunity to add in-house functional experts to help portfolio companies accelerate improvements. Around that time, American Securities formed what is now known as the “Resources Group.” Over roughly two decades, this Resources Group grew from a nascent concept into a robust program: for example, by 2016 the firm noted it had been “building this team for over 20 years”. implying initial steps in the mid-1990s or early 2000s. A key inflection came post-2008, when American Securities significantly expanded its operations team under leaders like Kate Mehr (who was instrumental in formalizing the Resources Group). By the 2010s, having dedicated in-house operators became central to the firm’s strategy, keeping pace with industry trends of more active ownership. The firm’s motivation for introducing operating partners was to support management in executing value creation plans without replacing them. This model evolved from a few generalists into a multi-specialist team over time, adding experts in lean manufacturing, pricing, IT, etc., as American Securities raised larger funds. Today the operating partner program is mature and deeply embedded – a far cry from the ad-hoc advisory relationships of the firm’s earlier years.
Structure and Scale of Current Model
American Securities’ operating partner function is embodied in its Resources Group, a full-time internal team of functional and strategic specialists. As of 2025, the Resources Group includes 50+ professionals across a range of disciplines. These team members are American Securities employees (not just external consultants) and work hand-in-hand with the investment deal teams. The Resources Group is organized by functional practice areas, covering Strategy, Operations, Human Capital, IT/Digital, Data Science, FP&A, Commercial Excellence, ESG, and an Asia capability. Each area is led by a senior operating partner or director who brings deep domain experience (e.g. former consultants or industry executives in those fields). The group is overseen by a Partner-level head of portfolio operations. Geographically, the Resources Group primarily operates from American Securities’ U.S. base but has an Asia-Pacific office to support portfolio companies with manufacturing and growth in Asia. This indicates global reach when needed. In addition to the internal team, American Securities maintains an Extended Network of external advisors and board executives (listed under “Extended Network” on their site) to supplement expertise for specific industries or projects. However, the core model relies on the dedicated in-house staff for most engagements. The Investment Team and Resources Group work as a paired unit, often jointly attending management meetings and strategy sessions. Overall, American Securities has institutionalized an operating partner structure that is sizable for its market segment (dozens of operators) and spans virtually all functional levers of value creation – a comprehensive, internally resourced model.
Key Features and Practices
American Securities integrates its operating partners at every stage of ownership to help good companies become great. Typically, the Resources Group gets involved as early as due diligence – once a Letter of Intent is signed, relevant functional experts join the deal team to evaluate improvement opportunities. After acquisition, the firm conducts a structured 100-day planning process to develop a detailed value creation plan in collaboration with management. The Resources Group members play a key role here, identifying initiatives in their areas (e.g. a pricing project, a supply chain optimization, a talent upgrade) and setting KPIs. These operating professionals then help execute those initiatives side by side with the portfolio company. Importantly, American Securities’ model is management-led and support-driven: rather than dictating mandates, operating partners act as “a resource to the CEO, to help accelerate changes” already in the management’s strategy. They will roll up their sleeves to implement projects (not just advise) – for example, deploying a continuous improvement expert to a plant to increase throughput, or a pricing expert to refine a portfolio company’s pricing strategy. Operating partners frequently serve as mentors and thought partners to company executives, and often hold board seats or observer roles for governance. The firm also offers on-request support: management can pull in Resources Group experts as needed (“available upon a CEO’s request” is a guiding principle). Common focus areas include lean operations, procurement savings, IT system rollouts (ERP), add-on acquisition integration, talent recruitment, and strategy development. The Resources Group also facilitates cross-portfolio best practice sharing – for instance, hosting workshops for portfolio CFOs or sharing data analytics benchmarks across companies. In summary, American Securities’ operating partners practice a collaborative, implementation-oriented approach: embedding with portfolio companies to execute specific improvement projects, while respecting that the company’s management remains in charge of day-to-day operations.
Philosophy and Differentiators
American Securities espouses a “partnership and alignment” philosophy in its operating model. The firm strongly believes in backing great management teams rather than replacing them – evidenced by an ~80% CEO retention rate in its portfolio. Its operating partner model is thus positioned as a resource to empower these existing leaders. The core belief is that by providing management with world-class tools, analysis, and extra hands, good companies can achieve exceptional outcomes without undermining the management’s authority or culture. This contrasts with some PE peers that take a more top-down or turnover-heavy approach. American Securities differentiates itself by the breadth of its in-house capabilities given its size. The Resources Group covers an unusually wide spectrum (from data science and AI to ESG to Asia strategy), reflecting a holistic view of value creation, not just cost cutting. This breadth aligns with the firm’s investment strategy of acquiring healthy companies and accelerating their growth and efficiency (as opposed to distress restructuring). Another differentiator is the firm’s long-term commitment to building the Resources Group – leadership has stated it took decades to develop their team’s capabilities and trust with portfolio CEOs. That longevity and deep integration is something few competitors match. Culturally, American Securities emphasizes mutual respect and low-ego collaboration (the firm describes its culture as one of “continuous improvement and mutual respect”. Operating partners embody this by working with management, not as overlords. The firm’s model also prides itself on being flexible to management’s needs – the Resources Group engages at the level and pace each CEO desires, reinforcing a service mindset. Compared to industry peers, American Securities is often noted for having one of the most extensive ops teams in middle-market PE and for being founder- and family-business friendly (over 40% of its deals involve family/founder-owned companies), thanks in part to its supportive operating approach. Fundamentally, the firm’s philosophy is that true partnership + in-house expertise = superior and sustainable value creation, which it sees as a distinguishing hallmark of its model.
Examples and Case Studies
American Securities’ operating partner model has driven notable value creation across its portfolio. For instance, at Milk Specialties Global (a nutritional ingredients manufacturer acquired in 2016), American Securities’ Resources Group supported a series of operational enhancements – including process upgrades that reduced wastewater generation by roughly 130 million gallons per year. They also helped Milk Specialties implement a new procurement program and efficiency initiatives, contributing to substantial EBITDA growth and a successful sale in 2023. In another case, American Securities combined three separate portfolio companies (all oil & gas producers) to form Camino Natural Resources, achieving economies of scale and professionalizing operations ahead of a lucrative exit. The impact of the Resources Group is evident in aggregate results as well. In 2023 alone, the group’s projects yielded over $100 million in procurement savings and $370 million in productivity gains across the portfolio. They also helped fill 25+ key management roles at portfolio companies that year. A specific success story is Chromaflo Technologies, where American Securities’ operating experts guided a global ERP implementation and lean manufacturing program – this improved on-time delivery and margins, ultimately helping double EBITDA and facilitating a profitable sale. Likewise, at General Cable (a complex carve-out investment), the Resources Group’s supply chain and pricing specialists worked with management to streamline SKU count and optimize pricing, resulting in margin expansion. The firm often publishes “Partnership Stories” with its CEOs: for example, the CEO of Tekni-Plex praised the Resources Group for assisting in multiple plant efficiency projects and M&A integrations, which were critical in doubling the business under American Securities’ ownership (per an American Securities case study). These examples underscore how the firm’s operating partners drive tangible transformations, whether through cost savings, growth initiatives, or strategic realignments. The consistency of outcomes – many companies in American Securities’ portfolio achieve significant EBITDA increases and smooth CEO transitions – speaks to a model where operating partners help turn good companies into great companies.
