Private equity fund managers are focusing on value creation amid economic uncertainty. The growing consensus is that they no longer feel confident that overall economic growth can deliver strong exits.
Instead, general partners, or GPs, in private equity and venture capital are putting greater emphasis on improving operations within their portfolio companies to protect and grow value. That value, in turn, is what they’re aiming to return to limited partners who are looking for higher distributions.
“The private equity industry is at an inflection point,” said Kevin Zacharuk, Head of Private Equity, Data & Research at S&P Global Market Intelligence. “GPs are shifting their approach to value creation, with operational improvements now ranking as the top priority.”
A Challenging Time For Private Equity
According to the 2026 S&P Global Market Intelligence Private Equity and Venture Capital Outlook report, firms are increasingly constrained by fragmented data and limited visibility into key performance metrics. The report also paints a gloomy macro outlook, with most GPs expecting GDP growth to stagnate or decline. While interest rate expectations remain largely neutral, half of respondents anticipate worsening inflation.
“This is a challenging time for private equity, with an uncertain macro backdrop threatening the industry’s efforts to boost portfolio company exits …
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