Private equity risk insights

Key findings from the 2025 report on Top Risks

Value 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 trends
12-minute read

Get the 2025 private equity infographic: top near-term risks at a glance
1-minute overview 

Watch the 2025 webinar: expert analysis on managing emerging risks
60-minutes, on-demand