#USA #New York #Private Equity #SP Global #Operational Value

2026 Private Equity Survey: A Shift Towards Operational Value

As the private equity landscape continues to evolve, S&P Global Market Intelligence has unveiled its 2026 Private Equity and Venture Capital Outlook. This report reflects a significant shift in strategy among private equity fund managers, who are increasingly focusing on operational enhancements as a means to navigate ongoing economic pressures.

The Changing Landscape of Private Equity

The findings of the report indicate that while concerns regarding the macroeconomic environment linger, private equity general partners (GPs) remain optimistic about their fundraising prospects for the upcoming year. Kevin Zacharuk, Head of Private Equity Data Research at S&P Global, highlights that this moment marks an important turning point for the industry. The priority has shifted from traditional financial engineering to creating value through operational improvements, indicating a more sustainable approach to growth.

Key Insights from the Survey

According to the survey, approximately 60% of GPs acknowledge that rising capital costs have necessitated a greater emphasis on the operational performance of portfolio companies, with a striking 72% identifying operational improvements as the primary lever for value creation. Moreover, a notable 59% of GPs express a sense of optimism regarding their ability to meet fundraising targets, with 21% feeling highly optimistic and 38% cautiously optimistic. Despite this, the survey also identifies shifting investor priorities as a daunting challenge for nearly half of the respondents.

In terms of deal activity, 38% of GPs foresee an increase in transaction volumes, while another 40% believe that volumes will remain stable. However, only 20% anticipate a rise in valuations, with 28% warning of potential declines. This cautious outlook correlates with broader economic expectations, as nearly half of the GPs predict no change in GDP growth, and around 47% expect inflation rates to worsen.

Investment Strategies and Areas of Concern

Despite these challenges, traditional buyouts remain the cornerstone of investment strategies for 45% of respondents, followed by growth equity (38%) and venture capital (26%). Nonetheless, concerns about credit quality continue to cloud the outlook for private credit markets, with 53% of GPs citing deteriorating credit quality and increasing defaults as pressing risks.

Another significant finding from the survey is the dissatisfaction among GPs regarding the quality of non-public operational metrics, with 37% expressing dissatisfaction, as well as frustrations over detailed debt data and third-party consensus estimates. Approximately 60% reported discontent with Limited Partner allocation data, revealing that fragmented or unstructured data remains a significant barrier to effectively driving performance in portfolio companies.

The Role of AI and Future Expectations

Interestingly, the integration of artificial intelligence (AI) into private equity remains in its infancy. While due diligence processes show some degree of AI adoption (31% reported partial or full integration), majorities perceive AI as ineffective in key areas such as deal sourcing (64%) and portfolio monitoring (75%). Challenges related to expertise, data privacy, and model accuracy further complicate the landscape for technology integration.

Looking toward the future, nearly half of the GPs surveyed (46%) anticipate a