Why private equity portfolio operations professionals switch firms

Lateral career moves are not unusual in private equity portfolio operations, and the reasoning behind them can help hiring authorities better recruit and retain top performers.

From the associate to partner level, portfolio operations professionals face many of the same career path decisions as other executives, but they also encounter unique factors that influence lateral moves between firms.

In this article, we outline the most common reasons these professionals choose to switch firms after occupying a role at the fund level.

Here are the specific motivators we see driving portfolio operations professionals to switch firms:

Cultural misalignment: Even with thorough interview processes, firm culture is difficult to assess from the outside. Portfolio operations leaders may discover that decision-making speed, autonomy or collaboration with deal teams and management teams do not align with their operating style. When this limits their ability to influence outcomes, they may decide to switch firms.

Limited career path clarity: Career progression within portfolio operations varies widely by firm. Some platforms cap advancement below the partner level, while others expect operators to rotate into interim executive roles before progressing. When expectations around career advancement are unclear, experienced professionals may seek a lateral move to a firm with better-defined paths.

De-emphasis on portfolio operations: In some firms, portfolio operations groups function as a support resource rather than a core value driver. Exclusion from diligence, investment committee discussions or strategic planning can signal a philosophical mismatch. Firms that integrate operations into underwriting and governance are more attractive to seasoned portfolio operations professionals.

Compensation misalignment: Compensation concerns go beyond base salary, and the linkage of carried interest to portfolio performance is critical. When compensation fails to reflect these professionals’ responsibility or influence, the perceived risk-reward balance can erode swiftly.

Geographic considerations: While portfolio operations roles can be remote or hybrid, closeness to firm leadership and/or key portfolio companies still matter to many professionals in these seats. Distance from decision makers can reduce visibility and slow execution, prompting a move to a better-aligned location.

Firm performance concerns: Fundraising momentum and firm stability directly affect portfolio operations priorities. Slower capital raises or strategy shifts can reduce investment in operational initiatives. Uncertainty around future funds or leadership often leads professionals to make lateral moves proactively.

Firm reputation and deal size: Climbing the ladder in private equity portfolio operations doesn’t always mean moving up in title. A lateral move in title or seniority to a more reputable firm doing larger deals can still feel like a promotion and is another reason we see these professionals switch firms.

The takeaway

Lateral moves at the fund level are not impulsive; they reflect careful assessments of culture, career trajectory, compensation, geography and firm health. For private equity portfolio operations professionals, changing firms is less about short-term gain and more about finding the right platform to build a durable, long-term career.