PitchBook’s 2026 PE Outlook Puts Talent At The Center Of Value Creation

As U.S. private equity enters 2026 with cautious optimism, the next phase of the cycle will be defined less by capital availability and more by execution – and that is where good leadership comes in. Aging portfolios, slower exits, and concentrated fundraising are reshaping how sponsors deploy talent across their platforms. Evan Berta, an associate at Hunt Scanlon Ventures, examines the latest data from PitchBook and what it signals for executive search, leadership strategy, and human capital priorities.

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.

“When exits slow, leadership durability becomes just as important as leadership brilliance. Sponsors are prioritizing executives who can drive sustained performance – not just short-term optimization.”

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.

“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.”

“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.

“For executive search firms, this translates into sustained demand for turnaround, transformation, and later-stage operators, not just deal-ready executives.”

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.

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.”