Value creation in private equity-backed businesses: aligning investor priorities and C-suite leadership

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Private equity is entering a more selective, execution-led phase, but the implications extend well beyond investors alone. Across the private equity ecosystem, firms, portfolio companies and business leaders are responding to the same pressures: uneven growth, operational complexity, technology disruption, trade volatility and higher expectations around performance. In that environment, value creation is becoming more connected. It is no longer shaped only by the deal thesis or the exit plan, but by how effectively investors and management teams work together on growth, resilience and transformation. Our 2026 global private equity market outlook highlights this shift, showing that private equity firms are placing greater emphasis on operational influence, disciplined growth strategies and differentiated execution. 

At the same time, our C-suite barometer 2026 shows that business leaders are reshaping strategy around technology transformation, AI, competition, tariffs and international expansion. The overlap is clear. Across the ecosystem, growth increasingly depends on sharper execution, stronger technology capability and the ability to adapt when conditions shift.   

• 48of PE firms say operational complexity is a top challenge 
• 1top strategic priority for business leaders is tech transformation 

Shared execution matters more than momentum 

From our 800+ PE firms surveyed, direction points to value creation moving away from momentum-led growth and towards execution-led performance. Growth capital remains the dominant investment type globally at 73%, but firms are operating in a more demanding environment. Approximately 67% say market, geopolitical and other external trends are the top challenges negatively affecting portfolio performance, while 48% point to operational complexity. Financing issues are also having more impact, with 58% saying their build-up strategies have been affected. 

That raises the bar for both investors and management teams. The strongest plans will focus on the few priorities that matter most, whether that is pricing, margin improvement, operational simplification, international growth or acquisition integration. Private equity firms need clearer visibility on whether those priorities are translating into real progress. Business leaders need reporting and governance that help them act faster, not just explain results later. The private equity findings reinforce this, with leadership selection, support for growth strategy execution and stronger KPIs among the most important tools firms use to manage challenges.   

How C-suite can turn investor expectations into operating priorities 

For business leaders in private equity-backed companies, alignment with investors is about turning the investment story into practical operating priorities and being clear on what will create value over the ownership period. 

Our C-suite findings underline why this matters. Senior leaders are pursuing growth in an environment shaped by economic uncertainty, increased competition, tariff pressures and shifting international dynamics, while continuing to prioritise technology transformation as a central part of their strategy. That points to a more disciplined kind of growth - one that depends on sharper choices, stronger execution and more agility built into the operating model.   

The main takeaway for management teams that will deliver more value is to define and select, measurable priorities, link them directly to business performance, and make sure leadership alignment and accountability is clear. In a more selective market, focus becomes part of the value creation story. 

A practical way to approach this is to: 

Technology transformation must deliver measurable outcomes 

Technology is now one of the strongest points of connection across the private equity ecosystem. From our 2026 private equity outlook, Technology & telecommunications is now the most frequently invested in sector globally at 58%, stepping ahead of financial services at 57% for the first time. For businesses worldwide, transforming company IT and technology remains the top strategic priority, three-quarters of organisations have a technology transformation strategy, and AI implementation tops the financial investment agenda for 2026. More than half of organisations stated AI is already having a major impact on their business – four in five have restructured teams to implement it and it’s created more jobs than its replaced – while 29% of businesses report AI has replaced jobs, 53% report it has created new roles. 

For both audiences, the message is the same: technology investment needs to be tied to business outcomes. That could mean better forecasting, stronger reporting, lower cost to serve, improved productivity or sharper customer insight. AI and digital transformation create most value when they are embedded into business priorities, supported by good data and governed properly. 

Ultimately, value creation across the private equity ecosystem will depend on how well investors and management teams stay aligned on their priorities. In a slower, more selective and competitive market, the winners will be those that combine disciplined execution, measurable technology outcomes and the agility to respond as conditions change. That is what will turn transformation into agility and agility into long-term growth.