< Back to the full 2025 report on Top Risks Private equity risk insights Download Key findings from the 2025 report on Top RisksValue creation — the ability to transform portfolio companies, enhance operational efficiency and drive profitable growth within a defined investment window — is at the heart of the private equity (PE) industry’s mission. However, achieving sustainable value is more challenging than ever for PE investors. Traditional strategies like leveraged buyouts, aggressive cost-cutting and financial engineering can no longer ensure success. Elevated interest rates have driven up capital costs, making debt-fuelled acquisitions and expansion plans less viable for PE firms. Inflationary pressures are also increasing labour, supply chain and operational expenses, squeezing margins across industries.At the same time, workforce expectations are shifting, while AI-driven business models are reshaping how companies operate and compete. To stay ahead, portfolio companies must invest more in talent, innovation and digital transformation — yet executing these initiatives under the compressed timelines of PE ownership is more than tough.According to findings from Protiviti’s latest Top Risks survey, executives and board members from PE firms and their portfolio companies are facing several complex and interconnected risks — operational, macroeconomic and strategic — that could derail their value-creation efforts. In addition to economic-related worries, cyber threats rank as a top risk issue for this industry group, and with good cause.Download the 2025 private equity insights brief: key risks and strategic trends12-minute readGet the 2025 private equity infographic: top near-term risks at a glance1-minute overview Watch the 2025 webinar: expert analysis on managing emerging risks60-minutes, on-demand Download Get more Top Risks insightsDiscover our full catalog of insight briefs for additional research findings and expert commentary related to the 2025 report on Top Risks.By industry: Aerospace & DefenseEnergy & UtilitiesFinancial ServicesHealthcareHigher EducationManufacturing & DistributionState & Local GovernmentTechnology, Media & Telecommunications By organisational role:Finance TeamsHuman Resources TeamsInternal Audit TeamsOperations TeamsTechnology & Data Teams Explore related solutions Pro Document Folder Private Equity Protiviti Private Equity consulting experts focus on the Private Equity firms’ deal thesis for each portfolio company, balancing strong EBITDA growth with prudent controls and compliance. Pro Digital Hightech Artificial Intelligence (AI) Artificial Intelligence (AI) stands at the forefront of innovation and is revolutionising the way businesses operate and compete. Al is critical to define the trajectory of future growth and value. The opportunity is vast and balance is key to strategic and responsible use of Al. Pro cloud Cybersecurity From the speed of innovation, digital transformation, and economic expectations to evolving cyber threats, the talent gap, and a dynamic regulatory landscape, technology leaders are expected to effectively respond to and manage these competing priorities.
