In short: The median PE operating partner earns a base salary of $342K (mean $367K), and operations leaders at $20B+ firms average ~$780K. 71% participate in a carry or carry-like vehicle, and 51% received a 2025 bonus of at least 75% of base. Operations hiring has slowed to about half of 2022/23 levels, but the pay model has settled and compensation is still rising.
- Base salary: median $342K, mean $367K; AUM drives cash compensation, particularly at senior levels.
- Bonus: 51% received 75%+ of base for 2025; 63% of plans rest on subjective, perceived contribution.
- Equity: 71% hold carry or a carry-like interest and 50% have co-invest, but 57% aren’t on the deal team’s plan.
- Hiring: 39% of 2026 hires came from other firms; AI roles make up two-thirds of net new hires.
- The perception gap: 44% think their firm’s plan is worse than the market, vs. 22% who think it’s better.
We are pleased to share our 2026 Report on Operating Partner Compensation, a companion to our reports on PE CEOs, CFOs, Equity Participation Plans and AI in PE. Three themes stood out. Portfolio operations is now an established market and career path in private equity, the core pay model has settled even as structures vary, and compensation is still moving up despite a slower hiring market.
Is the PE operating partner now an established career path?
Yes. In 2015, roughly 25% of US institutional funds employed operations professionals. That doubled to 50% by 2020 and now stands at just under three-quarters.
The market for these executives has matured with it. Hiring from other PE firms has grown ~25% a year since 2023, and in 2026, 39% of new operations hires came from another firm.
That's notable because the biggest growth area runs the other way. AI has been the single largest source of new operations seats since 2025, accounting for two-thirds of net new hires, and those hires come almost exclusively from outside the industry (see our AI in PE Report).
The people in these seats are seasoned. The average new hire is 39, up from 33 for those hired before 2020. 76% are industry generalists, 44% bring both consulting and operating experience and 68.5% hold an MBA. Women held only 15% of operating partner roles pre-pandemic but represent almost 25% of those hired after 2023.
What does a standard operating partner pay package look like?
While specific terms and rules vary, the general elements have been settled. Employment structure varies (27% are 1099/independent contractors rather than regular employees), there are differences in employing entity (management company or an affiliated company) as well as in the method of equity participation (true fund carry or “carry-like”). But the core elements are now standard: base salary, an incentive bonus, a co-invest opportunity and fund participation.
71% participate in a fund-level carry or carry-like plan, 50% have a co-invest opportunity and 26% participate deal-by-deal in the companies they support. 57% aren't on the same plan as the deal team; operations-specific plans are now the norm.
| Equity-based incentive (check all that apply) | Share of operators |
|---|---|
| Fund participation (carry or carry-like) | 71% |
| Co-invest opportunity | 50% |
| Deal-by-deal (companies supported) | 26% |
| Other | 10% |
Equity is the big lever. At base case, 18% expect more than $1M a year from their equity over the next five years, and the largest group (28%) expects $250K to $499K a year.
Firms outside these norms are paying for it; they're becoming the feeder firms for sponsors that have adopted the model. Operators know it, too. 44% think their firm's plan is worse than the market, versus about one in five who think it's better.
Firms outside these norms are becoming the feeder firms for those that have adopted them.
Is operating partner compensation still going up?
Yes, despite a slower hiring market. Operations hiring in 2025/26 runs at about half of 2022/23 levels. Even so, respondents report base salary increases averaging 8% and equity target increases of 14%.
Median base is $342K and the mean is $367K. AUM drives cash compensation, particularly at senior levels: operations leaders at $20B+ firms average ~$780K in base, while early-career pay barely moves across fund sizes. AI specialists earn a ~5% base premium; Human Capital and Finance specialists earn ~5% less than generalists.
Bonuses moved up, too. 43% had a target bonus of 75% of base or more, but 51% actually received that much for 2025. That's notable given 63% of bonus plans rest on subjective, perceived contribution rather than EBITDA or value growth.
What does this mean for sponsors heading into 2027?
If longer holds and a slow fundraising environment persist, we expect firms to be more selective about their operations teams in 2027 to fund these increases. The operators who keep their seats will be the ones most clearly tied to value creation.
Most already own a lot of it. 67% say the operations team defines the value creation plan, 66% share diligence with the deal team and 38% sit on portco boards as equals to the deal lead. 59% see a path to partner within operations.
For sponsors, that points to three moves: benchmark pay against your AUM band and the seniority of the seat, settle the employment structure and equity plan before you go to market, and be explicit about the partnership path. The ranges are wide, so we'd be glad to hear what you're seeing at your firm and how we can help.
Source: Vardis 2026 Report on Operating Partner Compensation. https://vardis.com/pe-operating-partner-compensationKey terms, defined
- Operating partner
- A private equity professional who works with portfolio companies on operational improvement and value creation rather than sourcing and executing deals. 59% see a path to partner within operations.
- Value creation plan
- The sponsor’s plan for how a portfolio company will grow in value over the hold period. 67% of operators say the operations team defines it.
- Carried interest (carry)
- A share of a fund’s profits paid to the firm’s professionals after investors receive their capital and preferred return.
- Carry-like plan
- An incentive designed to mirror the economics of carried interest without a formal allocation of the fund’s carry. 71% of operators participate in carry or a carry-like vehicle.
- Co-invest
- The opportunity to invest personal capital alongside the fund in its deals. 50% of operators have one.
- Deal-by-deal participation
- Equity tied to the specific portfolio companies an operator supports rather than the whole fund. 26% of operators have it.
Frequently asked questions
How common are operating partners at PE firms?
Just under three-quarters of US institutional PE funds now employ operations professionals, up from roughly 50% in 2020 and 25% in 2015, according to Vardis research.
How much does a PE operating partner earn in 2026?
In Vardis's 2026 survey of private equity operations executives, median base salary is $342K and the mean is $367K. Most operators earn between $251K and $400K in base, while 15% earn more than $500K. Operations leaders at firms with $20B+ in AUM average ~$780K in base.
Is PE operating partner compensation increasing?
Yes. Although operations hiring in 2025/26 is running at about half of 2022/23 levels, respondents to the Vardis 2026 survey report base salary increases averaging 8% and equity target increases of 14%. 51% received a 2025 bonus of at least 75% of base.
What does a standard operating partner compensation package include?
Four elements are now standard: base salary, an incentive bonus, a co-invest opportunity and fund participation. 71% participate in a carry or carry-like vehicle and 50% have a co-invest opportunity. Employment structure still varies: 27% are 1099 contractors rather than W-2 employees.
Are operating partners on the same carry plan as the deal team?
Usually not. 71% of operators participate in a formal carry or carry-like vehicle, but 57% are not on the same equity participation plan as the deal team. 26% also participate deal-by-deal in the companies they support.
Where do PE firms recruit operating partners from?
Increasingly from each other. In 2026, 39% of new PE operations hires were recruited from other firms, and hiring from other PE firms has grown ~25% a year since 2023. The exception is AI, the largest growth area since 2025, where new hires come almost exclusively from outside the industry.
How does Vardis approach PE operating partner search?
Vardis searches are partner-led from start to finish, with no associate-led outreach. We benchmark every mandate against proprietary compensation data from surveys like this one, and we work exclusively for private equity investors on firm and portfolio company hires. See our track record at https://vardis.com/our-work.
Build the operations bench behind the returns
The value creation plan only works if the right operators own it. Vardis is a retained executive search firm working exclusively for private equity investors on firm and portfolio company hires: operating partners, CEOs, CFOs, COOs and boards, plus pre-deal advisor and operating-executive introductions.
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Source: Vardis 2026 Report on Operating Partner Compensation. Executives in PE portfolio operations and value creation approached worldwide, August-September 2026.