North America Value Creation in Private Equity Report – 2025

Markus Lahrkamp, Managing Director | Rachel Jurgensmeyer, Director

Service / Industry: Operations Management

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.

Key North America Value Creation Report 2025 Highlights:

Tariff Ambiguity: Macroeconomic uncertainty is dampening the deal outlook
Beyond Cost Cutting: Value creation planning is increasingly a critical focus area for funds to achieve desired returns, particularly in uncertain times
Value Creation and Exits: Funds are both planning earlier for value creation and extending execution roadmaps as plans become more complex and transformational
AI and Large-Scale Digital Transformations: The scope of value creation plans continues to expand into top-line topics, with pricing and product development as the top two levers
Talent Rush: Operational transformations are becoming more complex, particularly with the expansion of digital disruption and AI execution
Execution Delays: As value creation plans become more complex, portfolio companies are struggling to realize the full potential of their value creation plans

Read the full report ▶

https://www.alvarezandmarsal.com/insights/north-america-value-creation-in-private-equity-report-2025

Authors

Markus Lahrkamp

Managing Director

Markus Lahrkamp is a Managing Director with Alvarez & Marsal Private Equity Performance Improvement in New York. He is the leader of A&M’s Commercial and Operational group in Private Equity Services and one of the head developers of A&M’s proprietary Rapid Results Program™, which he continues to lead. Mr. Lahrkamp is also experienced with cost optimization and other consulting approaches.

Rachel Jurgensmeyer

Director