Best of LinkedIn: Private Equity Insights CW 26/ 27

Industry voices move from concept to practice, establishing repeatable AI operating models and central hubs for sharing tools and benchmarks

Deal teams embed AI across sourcing, diligence, and exit planning, cutting cycle times and sharpening price discovery, with early wins reported in media, healthcare, and retail portfolios

Portfolio companies adopt cloud solutions such as SAP Public Cloud Edition, modernising data architecture to scale value creation

Commentators warn that dismissing AI as “hype” risks structural disadvantage as the web’s new entry point becomes algorithm-driven

Visionaries predict lean, tech-enabled one- or two-partner funds competing effectively with traditional multi-partner platforms

General partners pivot from financial engineering to operational alpha, mandating rigorous execution disciplines and agile talent models inside portcos

Cultural misalignment is quantified as direct EBITDA leakage, turning people strategy into a board-level KPI

CFOs and CEOs are pressed to deliver immediate cash agility and product-led growth rather than broad cost-cutting

Insurance, industrials, and healthcare assets serve as proving grounds for transformation playbooks that blend technology, process, and customer focus

Pick-interest-in-kind debt is resurging in sponsor-backed companies, reviving concerns over refinancing risk and covenant stress

Private credit structures bridge valuation gaps and secure fixed rates before further monetary tightening

Exit timing is reassessed in a higher-rate world, with investors favouring granular manager selection over broad sector calls

A 50-30-20 portfolio framework balances core private equity, private credit, and opportunistic bets for accredited investors

Private equity and private credit are treated as complementary levers, providing resilience and downside protection

Energy, infrastructure, data centres, and urgent-care assets emerge as high-conviction themes in the US and Latin America

European stability attracts fresh inflows, while Emerging Venture Markets continue to command specialist capital

Search mandates for CEO, COO, and CFO roles favour operators with digital fluency and hands-on execution credentials

The “5× Model” for repeat CEO performance gains traction as sponsors seek scalable leadership playbooks

Alignment between legacy management teams and new owners is highlighted as decisive for post-close value capture

Surveys from Alvarez & Marsal and Deloitte signal cautious optimism; deal volume moderated but long-term return expectations remain intact

Private capital is framed as a driver of US post-pandemic recovery and a stabiliser in Europe’s shifting order

Outlook briefings urge managers to treat volatility as a source of mispriced opportunities rather than a deterrent to deployment