North America Value Creation in Private Equity Report - 2025
Extended Exits and Value Creation in 2025: Transforming Portfolio Companies in Uncertain Times
The first half of 2024 showed early promise for deal activity - but evolving market volatility, geopolitical tensions, and emerging headwinds quickly shifted the landscape. Rising concerns over proposed tariffs and the potential for retaliatory trade wars have further cooled risk appetite. As a result, private equity leaders are sounding the alarm: Limited Partners are demanding stronger returns, and exits are proving harder than ever. Simply put, this may be the most complex environment PE has ever faced. In the second installment of the North America Value Creation Report, A&M’s Markus Lahrkamp and Rachel Jurgensmeyer unpack key findings from a survey of more than 100 private equity leaders. The message is clear: while some firms are already adapting, sustainable growth now demands strategic urgency - and no one can afford to stand still. | 
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Our Findings
31%
of respondents have a positive outlook on deal activity over the next 12 months.
38%
of respondents primarily focus on revenue growth plans for value creation.
85%
of respondents are underprepared to manage the changing tariff environment.
46%
of respondents focus on value creation during due diligence.
55%
of respondents are investing in value creation plan resources more than one year into the hold cycle.
87%
of mega large caps are looking at price increases.
72%
of respondents realized less than 75% of plan value.
45%
of respondents already include AI opportunities in their value creation plans.
Macroeconomic uncertainty is dampening the deal outlook.
Value creation planning is increasingly a critical focus area for funds to achieve desired returns, particularly in uncertain times.
Funds are both planning earlier for value creation and extending execution roadmaps as plans become more complex and transformational.
The scope of value creation plans continues to expand into top-line topics, with pricing and product development as the top two levers.
Operational transformations are becoming more complex, particularly with the expansion of digital disruption and AI execution.
As value creation plans become more complex, portfolio companies are struggling to realize the full potential of their value creation plans.
Previous Value Creation Reports
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