PitchBook’s 2026 PE Outlook Puts Talent at the Center of Value Creation
February 6, 2026 – PitchBook’s 2026 U.S. Private Equity Outlook describes a market that is reopening – but under pressure. Exit activity improved meaningfully in 2024 and 2025, yet the inventory of PE-backed companies continues to grow older. As of Q3 2025, U.S. PE inventory had expanded to nearly 12,900 companies, with roughly 30 percent held for seven years or longer and another 37 percent approaching mid-cycle maturity.For human capital leaders, this matters. Longer hold periods mean leadership teams are being asked to operate through extended value-creation timelines, often with thinner benches and less tolerance for underperformance.
What was once a five-year leadership horizon is now stretching closer to eight or nine years in many cases. The impact on leaders is immense. “When exits slow, leadership durability becomes just as important as leadership brilliance,” said Evan Berta, an associate at Hunt Scanlon Ventures. “Sponsors are prioritizing executives who can drive sustained performance – not just short-term optimization.”
Exit Pressure Raises the Bar for Portfolio Leadership
PitchBook notes that exit value rebounded sharply in 2025, reaching more than $620 billion through October, but exit pacing remains uneven across vintages.
Only 16.6 percent of assets acquired in 2021 had exited four years post-investment, compared with more than 32 percent of the 2017 cohort at the same point in the cycle.
This backlog has direct implications for talent strategy. As exits are delayed, sponsors are less inclined to tolerate leadership gaps or misalignment. Portfolio company CEOs, CFOs, and operating leaders are increasingly evaluated on their ability to execute through uncertainty, manage stakeholder fatigue, and continue value creation late into the hold period.
Related: KPMG Finds Success in M&A Remains Stacked Against Acquirers. Here’s Why.
“Extended holds change the leadership equation,” Mr. Berta noted. “Sponsors are less willing to ‘wait and see’ on talent. If a leader isn’t scaling with the business, or with the market, they’re more likely to be replaced.”
BCG Says Dealmakers Are Learning to Win in Uncertainty
After years of volatility, global M&A is no longer defined by stop-start cycles — it is being reshaped by how executives respond to uncertainty itself. Rather than retreating, seasoned dealmakers are using today’s conditions to reposition portfolios, sharpen strategy, and build long-term advantage. Leo Cummings, an associate at Hunt Scanlon Ventures, examines new insights from Boston Consulting Group and what they signal for leadership, talent, and execution in the next phase of dealmaking.
“For executive search firms,” he notes, “this translates into sustained demand for turnaround, transformation, and later-stage operators, not just deal-ready executives.”
Fundraising Concentration Reshapes Talent Strategy
PitchBook’s report also highlights accelerating capital concentration. In 2025, the top 10 U.S. PE funds captured nearly half of all fundraising capital, while emerging managers struggled to raise first-time vehicles.
Related: Mega-Deals Point To Shifting Priorities In M&A
This dynamic is reshaping talent demand across the PE ecosystem. Larger, multi-strategy platforms are building centralized operating teams, repeatable leadership models, and standardized talent frameworks across portfolios.
Smaller firms, by contrast, are being forced to differentiate through specialization or niche expertise.
“For talent leaders, this is a bifurcated market,” Mr. Berta said. “Large platforms want leaders who can plug into scaled operating models. Smaller funds need executives who bring immediate sector depth and hands-on execution.”
Executive search partners that understand these differing operating philosophies will be better positioned to advise both sides of the market.
Platform Buyouts Raise the Talent Bar
PitchBook expects platform LBOs to account for 25 percent or more of total PE deal activity in 2026, as financing conditions improve and sponsors regain appetite for larger transactions.
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As platform deals return, so does demand for leadership teams that can integrate acquisitions, professionalize operations, and manage complexity across multi-asset portfolios.
CFOs with M&A depth, CHROs with integration experience, and COOs who can scale systems quickly are once again in high demand, said Mr. Berta.
“Platform investing raises the premium on leaders who’ve done this before,” he noted. “Sponsors are looking for pattern recognition, not first-time learning curves, especially after the volatility of the past few years.”
Reprinted with permission from ExitUp!
Contributed by Scott A. Scanlon, Co-CEO, Evan Berta, associate – Hunt Scanlon Ventures
