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Private equity is built on a simple premise: businesses create more value when investors and management are closely aligned. The industry’s growth and long‑term outperformance reflect what happens when owners stay close to the action.
That alignment, however, is increasingly difficult to maintain.
The AlixPartners’ 11th Annual Private Equity Leadership Survey examines where expectations between PE firms and portfolio company leaders diverge, the leadership consequences that follow during the holding period, and how forces such as artificial intelligence are reshaping value creation.
With CEO turnover in PE firms increasing, the findings point to a clear shift. Superior returns today depend not just on strategy or financial engineering, but on deliberate alignment, leadership stability, and disciplined talent practices that endure from deal close through exit.
Practical actions for PE and portco leaders
- Strengthen alignment between PE & portco leadership
- Lower the cost of CEO turnover
- Identify the warning signs for senior leaders
- Bridge the gap between tactical and transformational AI
Key findings
Key finding #1 - The alignment gap between PE and portcos
PE firms and portcos align on goals, but not always on priorities. This misalignment in how leaders prioritize growth, risk, and execution can slow transformation and create unnecessary tension and fuel doubts.
"Fourteen months into a transformation, the data stops cooperating. The thesis that drove the plan—the one the CEO sold to the board, rallied the organization around, and staked his or her reputation on—is no longer holding. What happens next often determines whether value gets created or destroyed."
Ted Bililies, Partner & Managing Director
Key finding #2 - These misalignments can turn into a leadership crisis
As expectations collide with performance reality during the holding period, CEO turnover spikes around year two. Often driven by PE firms, unplanned leadership changes are costly and disruptive—and frequently avoidable with earlier alignment, assessment, and targeted executive support.
"Given current uncertainties undermining many pillars of private equity, the priority is now to accurately address value creation programs focused on lowering breakeven points, assessing how risk factors are changing, and relying on execution by experienced leaders."
Madalyn Miller, Partner & Managing Director
Key finding #3 - AI forces the execution vs. transformation decision
Artificial intelligence has become the clearest fault line between execution and transformation. While portfolio leaders often point to early AI gains, PE firms remain more skeptical, underscoring the gap between short‑term wins and enterprise‑level change—and the leadership decisions required to close it.
"Across private equity and corporate boardrooms, leaders are being forced to decide what kind of value they want AI to create—and how much conviction they’re prepared to put behind it. Most portcos today are chasing quick wins in productivity, salesforce enablement, and analytics to put points on the board, prove AI’s value, and build confidence before taking bigger swings."
Jason McDannold, Americas Co-Leader of Private Equity
Key finding #4 - Leadership capability is improving—but unevenly
PE firms have strengthened leadership assessment and operating support, but gaps remain in succession planning, coaching, and development—particularly at smaller firms. As pressure increases, those gaps show up in rising attrition risk, with 44% of portfolio leaders reporting a higher risk of losing top performers.
"Too many private equity firms are locked in a reactive posture when confronting talent risks like unplanned CEO turnover and unwanted attrition. Rather than shaping portfolio company talent strategies, firms find themselves putting out fires after value has already been eroded."
Andrew LeSueur, Partner & Managing Director
Our findings: strengthening PE & portco alignment
This year’s survey drew more responses than ever, with insights from more than 420 PE firm and portfolio company leaders. Their perspectives highlight where alignment, leadership support, and talent systems matter most for value creation.
Download the full report to explore the key findings.
View reports from previous years
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