A comprehensive guide to the operating partners of the leading private equity firms
Historical Evolution
Baring Private Equity Asia (BPEA), founded in 1997, gradually built an operating partner capability as it grew into one of Asia’s largest private equity firms. In its early years, BPEA primarily relied on its investment professionals and external advisors to support portfolio companies. However, as the Asian PE market matured, BPEA recognized the need for a more formal operations group to drive value creation in its investments (especially as it shifted from minority growth deals to more control buyouts in the 2000s). A pivotal moment came in 2010 when BPEA brought on Mike Sursock – the former CEO of KKR Capstone Asia – as an Operating Partner in Hong Kong. This hire effectively launched BPEA’s dedicated Operations Group. In the years following, BPEA expanded this group by adding seasoned industry executives across key markets (e.g. China, India) and sectors. By the mid-2010s, BPEA had a small but highly experienced team of operating partners: for example, by 2011 it had Operating Partners focused on China/Taiwan with retail and consumer backgrounds, in addition to Sursock heading operations in HK. This evolution was driven by BPEA’s philosophy of providing hands-on support to Asian businesses to professionalize and scale them to global standards. Over time, BPEA’s operating model became a differentiator, as few Asia-focused firms had substantial in-house ops expertise until the 2010s. The model continued to mature through Fund VI-VIII (2011–2020), with BPEA refining its approach to suit the regional context (e.g. emphasizing local talent and regional expansion strategies). In 2022, BPEA was acquired by EQT and became “BPEA EQT,” merging its approach with EQT’s established operational playbook. Nonetheless, the historical trajectory for BPEA shows a clear trend: from minimal formal operational support in the late 1990s to a structured operating partner program by the 2010s, integrated further into a global platform by the mid-2020s.
Structure and Scale of Current Model
As of 2025, now under the EQT Private Capital Asia umbrella, BPEA’s operating partner model functions as a blend of its legacy Operations Group and EQT’s global “industrial advisor” network. BPEA’s legacy Operations Group comprised a handful of full-time Operating Partners and directors stationed in major Asia markets. For example, BPEA had Operating Partners based in Hong Kong (for regional oversight), in mainland China/Taiwan (with sector expertise), and likely in India and Southeast Asia. These individuals were senior executives (often ex-CEOs or consulting leaders) employed or retained by BPEA to work with portfolio companies. The team size was relatively small – on the order of 5–10 core operating professionals – but with a broad reach via external advisors. BPEA also cultivated a network of Senior Advisors/Industry Experts who could be tapped for specific deals (for instance, former industry CEOs who would join portfolio company boards). Organizationally, the Operating Partners reported to BPEA’s senior management; one member (e.g. Sursock) was typically part of the investment committee discussions to represent the operations perspective. The coverage model was regional: different Operating Partners took lead in their geographic or sector domain. For instance, one OP focused on consumer/retail in China, another on industrial tech in North Asia, another on energy/resources in Southeast Asia, etc., reflecting BPEA’s diverse portfolio. After integration with EQT in 2022, the BPEA team also gained access to EQT’s global “EQT Network” of hundreds of industrial advisors and digital experts. This effectively scaled up the resources available to BPEA’s portfolio beyond the in-house team. In summary, the current structure is hybrid: a core team of dedicated Operating Partners in Asia (now part of EQT’s Asia portfolio team) working alongside a larger bench of external specialists, all coordinated to support BPEA EQT’s investments across Asia-Pacific. While smaller than some Western PE ops teams, BPEA’s model is notable in the Asian context and now benefits from EQT’s global operational infrastructure.
Key Features and Practices
BPEA’s operating partners are involved in driving operational improvement and expansion strategies for portfolio companies across Asia. A hallmark of BPEA’s practice was working with founder- or family-owned businesses to institutionalize their operations and expand internationally. During due diligence, Operating Partners would often assess operational gaps or growth initiatives (e.g. evaluating a company’s supply chain for scalability or identifying new product opportunities). Post-investment, BPEA typically formulated a 100-day plan with management, similar to Western PE playbooks, outlining key initiatives. Operating Partners then helped implement these – for example, launching new product lines, building out professional management layers, executing efficiency programs, and facilitating cross-border expansion. A signature BPEA approach was product and market expansion: in one case, BPEA’s team guided Phadia, a diagnostics company, to roll out two new testing instruments and enter Asian markets, which boosted revenue and EBITDA significantly. Another practice is leveraging BPEA’s pan-Asian network: Operating Partners would connect a portfolio company in one country with distribution channels or suppliers in another. They also often stepped in to fill interim management roles if needed (for instance, providing a seasoned CFO to a high-growth company until a permanent hire was made). Governance-wise, BPEA’s Operating Partners usually took board seats in portfolio companies, working closely with management on strategy execution. The firm emphasized collaborative working – Operating Partners would spend extensive time on-site at companies, especially in the initial year, to mentor local executives and implement systems (ERP, reporting, etc.) to meet global investor standards. Additionally, BPEA paid attention to talent development: it often helped recruit experienced professionals (sometimes from overseas) into key roles at Asian portfolio firms. Since the EQT merger, BPEA’s operating practices have also adopted EQT’s tools, such as its digitalization and sustainability frameworks. However, the essence remains: hands-on value creation in emerging markets – improving operations (often through product diversification, cost efficiency, and M&A) and scaling regionally/globally. The operating partners’ role is crucial in bridging gaps between local companies and world-class best practices, tailoring Western PE playbooks to the Asian business environment.
Philosophy and Differentiators
BPEA’s core philosophy was that active ownership can unlock the potential of Asian businesses, and that requires combining local knowledge with global best practices. The firm’s operating partner model was built on the belief that many companies in Asia (often entrepreneur-led) could achieve international standards of performance with the right guidance and systems in place. Thus, BPEA saw itself as a partner to help “professionalize” businesses without stifling their entrepreneurial spirit. One differentiator of BPEA’s model is its deep localization – unlike some global funds that parachute in experts, BPEA’s operations team included people who understood regional markets, languages, and business culture (e.g. Operating Partners in China with decades of retail operating experience there). This allowed a culturally astute approach to implementing changes, which is critical in Asia. BPEA also prided itself on being one of the few Asian PE firms with a dedicated in-house ops team (historically, many Asia PE firms relied purely on external consultants). This gave BPEA a competitive edge in complex deals, as noted in a 2010 investor presentation: BPEA was highlighted as “one of the few PE firms in Asia with operating experience through multiple cycles”. Another aspect of BPEA’s philosophy was growth-oriented value creation. The operating partners often focused on expansion (new products, new geographies) rather than just cost-cutting. For example, in the Phadia case, the strategy was product diversification and sales expansion which significantly increased the company’s value. This aligns with BPEA’s investment strategy of backing growth sectors (consumer, healthcare, education) where scaling up is key. Compared to global peers, BPEA’s model may have been smaller in absolute headcount, but it was highly targeted and nimble, allowing it to work across various mid-market companies in Asia efficiently. The firm also integrated ESG considerations early on – in later years, operating partners would help Asian companies improve governance and environmental standards, in line with BPEA’s issuance of a $3.2B sustainability-linked loan (the largest in Asia) to incentivize ESG progress. In essence, BPEA’s operating model stood out by combining East and West: applying global playbooks with local execution, a philosophy that created significant value and eventually made BPEA an attractive partner for EQT’s global platform.
Examples and Case Studies
BPEA’s operational engagements have led to several high-profile success stories in Asia. A prime example is Phadia, a Swedish diagnostics firm BPEA acquired in 2007. BPEA’s team helped Phadia diversify its product line by launching two advanced allergy/autoimmune test systems (with 4-5x higher throughput than prior technology), revamped its marketing approach, and expanded its sales presence in Asia. These initiatives, spearheaded by BPEA’s operating experts, grew Phadia’s EBITDA by >50% (from €96m to €146m) despite the 2008–09 recession. In 2011, Phadia was sold to Thermo Fisher for €2.47 billion – yielding about a 3.4x return and a €1 billion capital gain, a testament to the value created through operational improvements. Another example is Nord Anglia Education, a Hong Kong-based international schools operator. BPEA took it private in 2008 for around $360 million and over the years, operating partners assisted Nord Anglia in scaling from 14 schools to 43 schools across 15 countries. They helped standardize processes across campuses and execute a series of add-on acquisitions, transforming Nord Anglia into a global leader in premium K-12 education. By 2017, BPEA (holding 67% ownership) sold Nord Anglia in a deal valuing it at $4.3 billion – a remarkable value uplift partly driven by those operational and strategic enhancements. In the tech sector, BPEA’s operational approach is evident in companies like Hexaware Technologies (India-based IT services): BPEA’s experts worked with management on improving delivery utilization and moving up the value chain, which helped double profits and led to a successful exit. Additionally, BPEA often structured its deals to bring in experienced executives: for example, when investing in a Chinese retailer, they partnered with a former executive of a major retail chain as an Operating Partner, who joined the board and guided store productivity improvements – resulting in same-store sales growth and a lucrative IPO. BPEA’s focus on ESG is illustrated by its sustainability-linked financing: in 2022 it raised Asia’s first $3.2 billion sustainability-linked PE loan, tying portfolio companies’ environmental and social improvements to financial incentives. This pushed operating partners and management teams to implement energy efficiency and governance initiatives across BPEA’s portfolio. In summary, through cases like Phadia’s product innovation, Nord Anglia’s global expansion, and numerous others (Weetabix in consumer foods, English First in education, etc.), BPEA’s operating partner model has proven its ability to drive growth and operational excellence, delivering transformations that underpin strong investment returns.
