At the start of 2024, I wrote a post advising Operating Partners to keep their heads down and hold onto good seats. The market felt seized up. Activity was sluggish, and the client base was understandably cautious. Many firms were struggling to sell assets, and cost centers — including portfolio operations — were under review.

There were some bright spots, though. A handful of firms, both new and well-established, managed to raise capital during 2023. For them, the story was different: new funds meant new deployment opportunities, and that in turn meant they needed more operating resources to tend to the flock.

Lancor pushed through 2024 and actually had a strong year, thanks to a few clients who kept us very busy. By year-end, I was bullish on what 2025 might bring. Many of us expected the return of a stable, predictable, investing environment. On January 1st, we were ready to go.

But then, as we all now know, things looked very different by March 31st. The tariff situation threw the market for a loop. With so much uncertainty, investors struggled to confidently value businesses. The public markets swung wildly week to week. Predictability vanished. In some ways, things felt just as bad — maybe worse — than the year before.

Yet maybe that volatility was exactly the catalyst the industry needed.

Over the last decade, we’ve seen the institutionalization of the Operating Partner role across Private Equity. Most firms now have dedicated portfolio operations professionals focused on driving operational value. But for years, I’ve wondered: were we declaring victory too soon? Weren’t there still firms where Ops professionals felt like second-class citizens? Weren’t some deal partners just humoring the idea — treating it more as a marketing exercise than a strategic lever?

In an era of easy money and plentiful exits, not everyone truly needed an Ops team. But now, in the current environment, that’s changing.

As we head into Q4 2025, I think the new motto for Operating Partners might be:

“Never let a good crisis go to waste.”

Over the past several months, I’ve seen a sharp uptick in demand for portfolio operations talent — directly from the client side. The need spans every level, every functional specialty, and multiple industries. Meanwhile, many sitting Operating Partners hold carry in 2020 or 2021 vintage funds that don’t look promising, creating real mobility in the market. It’s an exciting time to be at the hub of this activity, helping confident buyers and highly capable operators find each other.

So as we move toward 2026, I’m optimistic — not just about the market, but about what this moment means for Operating Partners as a community.

Stay well, and talk soon.