​EY’s PE Survey reveals how leading firms invest in value creation

Phronesis partnered with EY to deliver its PE Value Creation Benchmark Survey 2025, a flagship research initiative exploring how private equity firms are investing in value creation across their portfolios.

With deal returns increasingly reliant on operational improvements rather than financial engineering, the survey provides a timely look at how firms are deploying internal and external resources—from due diligence to execution.

This research formed part of EY's ongoing thought leadership programme and was used as a core engagement tool for its private equity client base.

Objective

EY sought to understand where and how private equity firms are investing in value creation, against a backdrop of growing pressure to drive returns through operational improvements.

Specifically, the survey set out to benchmark:

• How much firms invest in value creation, and when those investments occur
• The functions most often prioritised (e.g. HR, pricing, IT, digital transformation)
• The relative value and impact of different levers
• The role and structure of operating partners and external advisors

The findings aimed to help EY's clients benchmark their own approaches, develop internal playbooks, and identify areas of potential competitive advantage.

Challenge

The survey needed to reach a niche group of senior decision-makers with direct oversight of value creation strategy—typically Managing Directors, Heads of Portfolio Operations, or Operating Partners — within upper-middle-market to large private equity firms (US$5 billion+ AUM). By EY's own estimates, only around 400 firms globally met this inclusion criteria.

EY also needed to be confident their research partner could deliver high-quality data from time-constrained professionals on a complex and commercially sensitive topic.

Phronesis was selected based on our longstanding track record of working with EY and our proven ability to reach senior individuals and deliver high-quality data from hard-to-reach audiences.

Solution

Phronesis designed and delivered a global research project that combined quantitative and qualitative insights. The work included:

• Outreach and screening
• Structured telephone interviews
• In-depth qualitative interviews
• Data analysis and synthesis

We conducted:

• 125 structured telephone interviews with:
  • Managing Directors
  • Heads of Portfolio Operations
  • Operating Partners
• Based in North America, Europe, and APAC
• From private equity firms with over US$1 billion AUM, with a focus on firms over US$5 billion
• 5 qualitative, in-depth interviews exploring key themes that emerged from the structured interviews

Results

The research formed the basis of EY's Private Equity Value Creation Benchmark Survey, highlighting how top-performing PE firms approach operational value creation.

Key insights included:

• Firms with lower exposure to unforeseen risks were more likely to focus on capital efficiency, pricing, and supply chain optimisation during diligence and post-close planning.
• Most firms now integrate diligence findings directly into their investment base case.
• Operational areas most likely to meet ROI targets included finance optimization, sales acceleration, and working capital improvement.
• A range of operating models were observed, from generalist-led teams to functionally specialised structures.

The research formed the basis of EY's Private Equity Value Creation Benchmark Survey, highlighting how top-performing firms approach operational value creation.

Impact

Phronesis delivered a robust, data-led piece of thought leadership for EY to use to engage key clients and prospects. The success of the project has since led to a follow-up survey, demonstrating the value and credibility of the insight delivered.

Download the full report: PE Value Creation Benchmark Survey 2025