Rethinking private equity: creating value with operational alpha

The PE sector is at a turning point. High interest rates, geopolitical risks and technological disruptions are making traditional value levers such as leverage and multiple expansion increasingly ineffective. In future, fund managers should no longer rely solely on financial arbitrage to generate returns, but on genuine operational value creation.

The "Value Creation in Private Equity" study shows that successful funds rely on operational alpha - a systematic, data-based approach to increasing value. The aim is to identify margin potential early on, consistently implement transformations and use technologies such as AI and advanced analytics to make more precise decisions. This creates a scalable competitive advantage: faster EBITDA uplift, greater resilience and better preparation for the exit.

The five key success factors at a glance

• Use external signals: Identify opportunities and risks at an early stage
• Proactive measures: AI-supported forecasts for quick decisions
• Data as an asset: central data pools for transparency and synergies
• New operating model: aligning teams and processes for operational excellence
• Strengthening resilience: scenario simulations for robust strategies

Fundraising is stagnating, exit pipelines are overloaded, investors demand transparency and sustainable performance.  The institutionalization of operational alpha offers the potential to enable both higher returns and better access to new capital.

Advantages at a glance

• Systematic EBITDA uplift instead of one-off cost reductions
• Scalable transformation for portfolio companies and funds
• Competitive advantages through the use of AI and big data
• Greater investor confidence and transparency