2025 Private Equity Value Creation Index
Recalibrating Value Creation Levers
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Market multiple expansion is increasingly uncertain, and PE firms are navigating a more challenging path to returns. Longer hold periods, elevated interest rates and persistent valuation pressures have made value creation more critical than ever. Today’s environment demands a more deliberate, multifaceted approach — one that balances operational rigor, a clear focus on sustainable growth and the strategic use of new technologies.
Insights from a survey of more than 500 global PE leaders reveal which levers firms trust most, where execution gaps persist and why today’s playbook must evolve.
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Less Successful
More Successful
Slower Impact
Quicker Impact
Based on past-12-month experience
Implementation Success
Expected Time to Value / Impact
Cost structure optimization
Sales force & marketing effectiveness
Price optimization
Artificial intelligence
Technology/IT*
Product/market Expansion
Mergers & acquisitions
Customer health & churn prevention
Supply chain & operations
Cash conversion/working capital optimization
Quick Wins
Long-Term Plays
Execution Gaps
Source: FTI Consulting 2025 Private Equity Value Creation Index
Post-Execution Time to Impact vs. Implementation Success
The Next Chapter of Value Creation
With the investment horizon expanding, value creation requires greater coordination, more patience and a willingness to invest in levers that take time to mature but create long-term value. That reality, at times, can create friction between sponsors and management teams, particularly when near-term pressure for results clashes with long-term potential. Our experts see this as a pivotal moment in the evolution of the PE playbook.
Despite their strong impact potential, many firms report seldom using commercial levers like Product Expansion, Marketing Effectiveness or Customer Health.
The chart reveals a clear link between frequency of use and execution success: firms are defaulting to the levers they know, rather than fully capitalizing on the ones that create differentiated, long-term value. The real opportunity lies in the underused levers, which have high upside when executed well.
Untapped Potential
Many firms continue to rely on familiar levers — Technology & IT , Cost Structure, Working Capital Optimization and Supply Chain & Operations — with the vast majority reporting frequent or occasional use.
Conventional Plays
“Cost alone doesn’t deliver returns. High-performing firms treat it as a catalyst, using savings to reinvest in the capabilities and growth engines that drive sustainable value creation. Growth is harder to unlock — which is exactly why it’s more valuable.”
Jiva Jagtap, Senior Managing Director, Global Leader of Private Equity
Larger bubble size indicates relatively greater potential for impact
*Technology/IT adjusted based on uniquely long time required for execution.
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Closing the Strategy-Execution Gap
Only 23% of firms use Artificial Intelligence (“AI”) or Mergers & Acquisitions (“M&A”) very often for value creation, and AI, in particular, shows high execution friction, with one-third rating results as mediocre or worse. The solution here isn’t vision — it’s de-risking the execution to accelerate implementation and create tangible value.
AI is fast becoming the defining disruptor of the PE landscape — named by 42% of respondents as the top force reshaping traditional models, but for many, confidence in executing AI strategies remains low.
With 65% ranking AI as a top strategic priority for 2025, the message is clear — this is no longer a “next step,” but a now-or-never opportunity to leverage and capitalize on AI as a key tool for next phase of growth.
AI: Potential vs Pitfall
57%
AI and automation maturity in operations
52%
Strength and scalability of revenue model
50%
Market positioning and competitive differentiation
50%
Strength of management team and leadership succession plan
47%
Margin expansion and operational efficiency
Most Critical Factors in Preparing for a Successful Exit in the Next Three Years
Respondents were asked to select up to three critical factors
Source: FTI Consulting 2025 Private Equity Value Creation Index
Top Disruptors in the Next Three Years
AI and automation
42%
18%
18%
Rising cost of capital
Increased competition
Source: FTI Consulting 2025 Private Equity Value Creation Index
M&A remains a staple, relied on by 69% of surveyed firms. Yet integration hurdles continue to undermine deal value — pointing to challenges in integration and realizing synergies.
Longer value creation time horizons, coupled with execution gaps, combine to make M&A one of the least prioritized levers for PE firms in 2025. Yet the disruption caused by M&A often creates opportunity.
67%
56%
42%
Don’t Consider M&A a Top Priority for 2025
Rate M&A Execution as Below Average, Worse Performance than Most Levers
Expect M&A Value After 1+ Years
Source: FTI Consulting 2025 Private Equity Value Creation Index
Mixed Messages on M&A
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Gaining an Edge
About the Survey
FTI Consulting conducted a survey of more than 500 decision makers, including investment professionals and operating partners from PE firms, to understand the levers these firms use to create value in their PortCos. The survey included global participation from the United States, LATAM, EMEA and APAC. The survey was conducted online in April 2025.
For any questions relating to the survey methodology, please contact FTI.PrivateEquity@fticonsulting.com
Our full findings show how surveyed PE leaders are approaching today's most critical value creation levers — across dimensions like frequency, prioritization and AI impact — paired with field-tested lessons from our work with firms and PortCos.
Get practical, ROI-focused insights on overcoming execution hurdles, aligning with management teams and driving exit readiness in 2025.
Value Creation in Action
CASE study
Savings Uncovered: Identifying $42 Million in Cost-Saving Opportunities Amid Operating Model Redesign
CASE study
Driving Efficiency: Accelerating a $500 Million PE-Backed Freight Platform Integration
CASE study
Funds Uncovered: $150 Million Cost Optimization of a Leading Managed Cloud Service Provider
CASE study
Merger Managed: $75 Million Saved for PE-Backed Health Organization
Jiva Jagtap
Senior Managing Director, Global Leader Private Equity
denver, us
Keith McGregor
Senior Managing Director
sydney, au
Lars Faeste
EMEA Chairman
london, uk
Roy Huang
Senior Managing Director
hong kong, CN
Sam Aguirre
Senior Managing Director
São Paulo, br
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FTI.PrivateEquity@fticonsulting.com
Less Frequently Used
More Frequently Used
Less Successful
More Successful
Based on past-12-month experience
Frequency of Lever Use
Lever Implementation Success
Cost structure optimization
Sales force & marketing effectiveness
Price optimization
Artificial intelligence
Technology & IT
Product & market expansion
Mergers & acquisitions
Customer health & churn prevention
Supply chain & operations
Cash conversion & working capital optimization
Source: FTI Consulting 2025 Private Equity Value Creation Index
Implementation Success, Frequency of Use and Perceived Value
Untapped Potential
Conventional Plays
Executional Challenges
Larger bubble size indicates higher perceived value
