Value creation in private equity: navigating the new frontier

A paradigm shift: from transactions to transformations

Private equity firms are increasingly adapting their approach. While acquisitions remain a key lever, there is a growing emphasis on building resilient and high-performing companies capable of delivering sustainable growth. Value creation is therefore driven not only by external expansion but also by enhancing the performance of existing investments—whether through revenue growth, operational improvements, or optimizing valuation multiples. This requires embedding value creation strategies at the core of every investment decision.

Value Creation by Design

The best-performing PE firms don’t wait for post-acquisition challenges to reveal themselves. Instead, they design and implement value creation plans from day one, with clearly defined objectives, detailed roadmaps, and actionable milestones. This proactive approach enables them to seize early wins while laying the groundwork for sustainable growth.

Organic Growth as the new engine

Organic growth is no longer optional—it’s the primary driver of superior returns. By fostering innovation, expanding into new markets, and enhancing customer experience, PE firms can transform their portfolio companies into market leaders. This requires not only a deep understanding of industry dynamics and the agility to adapt to changing conditions, but also a fine grasp of the operational realities within portfolio companies, along with the capability to support their transformation when needed.

Operational Excellence as a core competency

Efficiency is the bedrock of profitability. From streamlining supply chains to digitizing processes, operational improvements deliver immediate and long-term benefits. PE firms that systematically optimize operations not only improve margins but also build scalable platforms for future growth.

The role of ESG in Value Creation

Environmental, social, and governance (ESG) factors are increasingly critical in driving value. While recent geopolitical shifts have led some countries to pull back from international ESG commitments, these considerations remain a priority for investors and businesses alike. Integrating ESG into operations and strategy not only mitigates risks but also enhances brand equity, making portfolio companies more attractive to customers, employees, and future buyers.”

The Power of Data

Data is the fuel of modern value creation. Leveraging high-quality, structured data allows firms to uncover inefficiencies, monitor performance in real time, and identify growth levers across portfolio companies. Building robust data capabilities is now a prerequisite to drive operational excellence and strategic decision-making.

AI as the Engine

Artificial intelligence is rapidly transforming business performance. Equipping portfolio companies with AI-powered tools, upskilling teams to harness these technologies, and fostering partnerships with tech leaders are becoming key differentiators. Private equity firms must also develop the capacity to act as fast followers, ensuring their portfolio companies remain at the forefront of their sectors as AI reshapes competitive landscapes.

People at the heart of Value Creation

Sustainable value is first and foremost driven by people. Supporting and empowering management teams is critical to ensure that processes, tools, and strategies are fully understood and leveraged. Developing leadership capabilities and aligning teams around a shared vision fosters performance and resilience over the long term.

The playbook for success: aligning vision with execution

The private equity firms that excel are those with a clear and disciplined playbook for Value Creation. This playbook begins well before acquisition and continues through the full lifecycle of ownership. It includes actionable strategies tailored to the specific needs of each portfolio company, underpinned by robust execution frameworks and measurable KPIs.

Key elements of this approach include:

• Leadership Alignment: Ensuring that management teams are aligned with the investment thesis from the outset, supported by well-defined incentives tied to value creation objectives.
• Agile Execution: Breaking down large-scale transformation plans into achievable sprints that deliver incremental results while maintaining momentum.
• Continuous Improvement: Implementing systems to regularly monitor performance, recalibrate strategies, and seize opportunities as they emerge.

By fostering a culture of execution and adaptability, PE firms can ensure that their vision for value creation translates into tangible and lasting outcomes.

Onepoint’s approach: enabling Value Creation at scale

At Onepoint, we understand that value creation is the cornerstone of private equity success. By partnering with PE firms, we help build robust equity stories and drive impactful transformations across portfolio companies. Our expertise spans a wide range of strategic and operational initiatives, designed to maximize growth, efficiency, and sustainability. Here are some examples of the key areas we address:

Organic growth boosting – Driving revenue growth is a critical element of any equity story. We support:

• Designing and implementing data-driven pricing and promotion strategies.
• Optimizing salesforce effectiveness with advanced CRM tools and streamlined workflows.
• Crafting innovative go-to-market strategies to penetrate new markets or strengthen existing positions.

Cost efficiency measures – Efficiency is a cornerstone of sustainable value creation. We focus on:

• Conducting zero-based budgeting to identify cost-saving opportunities.
• Reengineering processes to eliminate inefficiencies and enhance productivity.
• Streamlining organizational structures and improving resource allocation.

Digital assets enhancement – Digital capabilities are at the heart of modern value creation. We help companies:

• Modernize their IT landscapes with scalable, cloud-based architectures.
• Automate processes and leverage AI / GenAI to improve efficiency and decision-making.
• Enhance customer experiences through omnichannel strategies and digital innovation.

ESG Integration – Sustainability is no longer optional, it is s a market expectation. We assist companies in:

• Embedding ESG principles into business models to align with investor and societal demands.
• Optimizing resource usage and adopting green practices to reduce environmental impact.
• Developing robust ESG reporting frameworks to meet regulatory and stakeholder requirements.

Data and AI-Driven insights – Data is the fuel for smarter and faster decisions. We help organizations:

• Build data governance frameworks and ensure data quality for reliable decision-making..
• Leverage predictive analytics to uncover growth opportunities and reduce risks.
• Implement real-time dashboards for transparent performance tracking and management.

Training and Workforce development – People are the engine of any transformation. We deliver:

• Custom training programs to upskill employees in areas such as digital tools, AI, and ESG.
• Leadership development initiatives to align management teams with strategic goals.
• Change management strategies to foster a culture of agility and innovation.

Building a strong Equity Story – A compelling equity story is essential to maximize portfolio value at exit. We work with companies to:

• Highlight their unique strengths and growth drivers to attract future buyers.
• Develop clear, data-backed narratives that showcase operational improvements and market positioning.
• Align transformation initiatives with the overarching investment thesis to ensure consistency and impact.

These are a few examples of the areas where we bring value. Our approach is collaborative, pragmatic, and tailored to the unique challenges and opportunities of each portfolio company. By integrating strategic insights with hands-on execution, Onepoint helps private equity firms turn ambition into measurable results.

The future of Private Equity

Private equity is entering a new era, defined by its ability to deliver not only financial returns but also meaningful business transformation. Firms that prioritize value creation by design and focus on organic growth will lead the industry. The era of simple financial engineering is giving way to a more nuanced approach, where success is measured by the resilience, adaptability, and profitability of portfolio companies.

What does this future look like?

High-Performance Companies:

• The private equity winners will be those who build resilient, future-ready companies—able to grow and perform sustainably, regardless of market conditions, even beyond their period of ownership.

Stakeholder Value:

• Value creation extends beyond shareholders. Employees, customers, and communities will increasingly expect PE-backed companies to deliver on broader societal goals.

Sustainable Differentiation:

• Firms that integrate ESG, innovation, and operational excellence into their playbooks will not only outperform but also differentiate themselves in a crowded market.

The private equity sector is at a turning point. To remain competitive and relevant, PE firms must rethink how they create value—embracing a proactive, integrated, and holistic approach. This is not just a challenge; it’s an opportunity to redefine what success means in private equity. The time to act boldly is now.