CoS and Operating Partners
Preferred partners of LBO executives
Because they build close relationships with executives, Chief of Staffs also become key contacts for Operating Partners. Nicolas Requillart, Operating Partner and Associate Director of the Siparex investment fund, discusses the spirit of partnership he has developed with the Chief of Staffs he works with.
Can you briefly introduce the Siparex Group?
Nicolas Réquillart: Siparex is an independent French private equity group with €3.7 billion in assets under management. It finances and supports the development of companies, from startups to mid-sized businesses, through private equity, venture capital, and private debt.
In total, Siparex participates in the financing of more than 250 companies, in majority or minority positions. It is active in many sectors, such as industry and related services, SaaS, software publishing, logistics, mobility, and agri-food.
In order to respond to major transformation challenges, the group also manages thematic funds investing in companies in the energy transition and nuclear sectors, as well as an impact fund in the healthcare sector.
You are an associate director at Siparex and an operating partner (OP) for companies in which Siparex has invested. Can you tell us more about your role as an OP?
Nicolas Réquillart: As an Operating Partner at , my role is to act as a kind of auxiliary engine, available to executives who want help accelerating their transformation plans. This can involve IT or digital technology, sales performance, or more generally HR or governance issues. I also provide support to investors during the due diligence phase. However, 80% of my time is still dedicated to post-investment support, i.e., defining, implementing, and accelerating transformation plans.
In this capacity, I liaise directly with the CEOs of the companies in which we invest, but also with members of the executive committee when necessary and useful.
How does the role of an Operating Partner differ from that of a Chief of Staff (COS), who also has a highly operational role working alongside senior executives?
Nicolas Réquillart: The first major difference is based on a very simple fact: an Operating Partner and a Chief of Staff do not have the same employer. The former is employed by the investment fund that owns the company, while the latter is employed by the company itself.
In fact, the Operating Partner is made available to the executives of the companies in which the fund invests. Providing operational support to executives is central to their mission, but there is no relationship of subordination between them and the executives they support. The purpose of the Operating Partner is to help executives and their teams quickly achieve their development objectives, even though they primarily operate on behalf of and for the fund that employs them.
For their part, chiefs of staff act as the right-hand person to the executive to whom they report directly and hierarchically. Depending on the sector or type of company, they sometimes perform functions similar to those of a director of operations or a secretary general, for example, even if this term has fallen somewhat out of use. Initially, the title of Chief of Staff was closely linked to the world of startups, where they played a key role in the highly operational management of performance.
The Chief of Staff (COS) and the Operating Partner (OP) ultimately play complementary roles alongside senior management. How does the relationship between these two key players work?
Nicolas Réquillart: Given the multifaceted nature of the Chief of Staff role depending on the type of company (being COS in a Series A or Series B startup is not the same as being COS in an SME, a mid-cap company, or even an SBF 120 or CAC 40 group), their role is effectively complementary to that of an OP. As the CEO's right-hand man, the COS is naturally a key contact for the Operating Partner, with whom he or she regularly exchanges ideas to carry out the transformation plan proposed by the OP. I myself am required to hold regular meetings with Chiefs of Staff (who may also be called Chief Operating Officers or Deputy CEOs, depending on the companies I work with) to monitor the transformation plan and ensure its execution. The Chief of Staff and the Operating Partner therefore work closely together in a truly collaborative relationship.
Can the professional relationship between the Operating Partner (OP) and the Chief of Staff (COS) be closer than that between the OP and the executive they support?
Nicolas Réquillart: Not necessarily. Let's say that the relationship between the Operating Partner and the Chief of Staff stems more from the relationship between the OP and the executive. The scoping phase, during which the vision and strategy are defined, is first carried out on the basis of consultation between the Operating Partner and the executive, before being implemented by the Chief of Staff, who may also, in most cases, participate in the consultation. It is precisely this implementation phase that then gives rise to frequent exchanges between the COS and the OP.
Let's not forget that the Operating Partner is first made available to the executive by the investment team of the fund that employs them. If this executive is someone who delegates a lot, then the Operating Partner will be required to work closely with the operational teams, and therefore with the Chief of Staff. Ultimately, it all depends on the executive's ability or willingness to delegate.
Can the Chief of Staff (COS) still act as a liaison with the CEO when the Operating Partner (OP) wants to convey a message that may be difficult to hear?
Nicolas Réquillart: Absolutely. An Operating Partner must also act as a thorn in the side and be able to apply pressure where necessary. In this regard, the quality of the relationship with the Chief of Staff, thanks to their role as right-hand man and trusted colleague, can be very valuable in relaying certain messages.
As part of your support, do you ever recommend hiring a Chief of Staff (COS)?
Nicolas Réquillart: Absolutely. This situation recently arose with a company we are working with that aims to double in size within five years, either through organic growth or external growth. To achieve this, it is essential that the CEO, who is often very hands-on, finds time to step back. We therefore felt it was necessary to bring in a right-hand man. Based on the tasks that this executive would be willing to delegate, we ultimately identified the need for him to hire a Chief of Staff rather than a Deputy CEO.
The objective of creating this position will clearlybe to improve the company's operational performance and relieve the CEO of day-to-day management tasks. The COS will be responsible for managing purchasing, as well as IT. They will therefore clearly have the role of Director of Operations. However, the term Chief of Staff is more in line with current trends and makes the position more attractive. Ultimately, we plan to develop this role into a CEO position.
That is why I called on Pakomdab to carry out this recruitment process. Pakomdab has a keen understanding of the evolving profile we are looking for in this type of position, especially since the firm is also able to source related roles such as COO, Chief Strategy Officer, etc.
What do you think is driving the current boom in Chief of Staff and Operating Partner roles in France?
Nicolas Réquillart: For the past six years, investment funds have felt that cash contributions are no longer enough to set them apart and attract the best management teams. To win the best deals, they need to offer business and sector expertise, hence the growing role of operating partners. In practical terms, they help to multiply the value creation potential of the investment fund's operations.
For its part, the rise of the Chief of Staff stems from the startup ecosystem, even though the role is gradually spreading to SMEs, mid-cap companies, and large groups. To effectively manage growth and transformation, a leader must surround themselves with trusted right-hand people. It is thanks to the added value provided by this role in startups that it is emerging in the world of mid-sized companies and large corporations, based on a hybridization with the positions of Chief Operating Officer or General Secretary. The Chief of Staff brings with them highly attractive values linked to performance optimization, strategy deployment, proximity to the CEO and teams, trust, and transparency.
