Revenue growth and improved profitability drove 90% of private equity value creation in exits from 2022–2025.
authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
Contributions to gross MOIC for average exited buyout deal
Chart showing contributions to gross MOIC for average buyout exits across 3 periods, by revenue, margin growth, leverage, FX, and valuation effects.
Source: MSCI as of June 30, 2025. MOIC refers to Multiple on invested capital.
  • Private equity is entering a new secular regime that is reshaping how returns are generated.
  • For example, companies exited by private equity funds from 2015–2021 were consistently supported by multiple expansion and leverage (net debt effect). Those tailwinds are fading amid higher rates, greater policy uncertainty and the potential for meaningful productivity gains.
  • These shifts should increase dispersion across managers and reduce the effectiveness of strategies that relied on leverage and multiple expansion. Case in point: Companies exited from 2022–2025 saw over 90% of value creation come from revenue growth and margin expansion.
  • In this environment, today’s private equity market increasingly favors managers with demonstrated capabilities in operational excellence, especially in less efficient and more fragmented markets.

Explore this insight and more in our 2026 Private markets outlook: Forged, not found: Selectivity shapes outcomes as momentum builds.

contributing authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
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