OpCo (Operating Company)
An OpCo, short for Operating Company, is a business entity responsible for managing the day-to-day operations of an organisation. It focuses on core business activities such as manufacturing, sales, or service delivery, often as a subsidiary of a larger parent company or holding company. While an OpCo may not own the physical assets, it typically manages and operates them to generate revenue. OpCos is responsible for employing staff, maintaining customer relationships, and overseeing daily business functions. In an OpCo/PropCo structure, the OpCo's finances and credit rating are kept separate from the property-owning entity (PropCo). OpCos are directly responsible for creating income through business activities and executing strategies set by the parent company or board. Common in industries like real estate, hospitality, and healthcare, OpCos allow for efficient management of operations while potentially benefiting from the resources and support of a larger corporate structure.
