Alvarez & Marsal: Value Creation in Private Equity Critical in 2026
Alvarez & Marsal's new report indicates value creation is the primary driver of private equity success in North America for 2026, shifting from a supporting function. Deal activity has resumed but liquidity remains selective.
Management consulting firm Alvarez & Marsal has released its "North America Value Creation in Private Equity Report - 2026." The report emphasizes that value creation has become the primary determinant of private equity success in North America for 2026, moving from a supporting workstream to the central focus.
The report finds that deal activity has reopened across North America, but exits continue to be gated by valuation gaps, geopolitical uncertainty, and financing conditions. Liquidity remains selective, making a firm's ability to generate tangible value through operational improvements critical.
The survey, which captured senior perspectives across deal teams, operating partners, and PE-backed management, suggests that the next cycle of outperformance will be defined less by identifying levers and more by building the operating model, playbooks, and execution capacity required to deliver them earlier, faster, and at scale.
The report defines "Operational Alpha" as repeatable outperformance driven by tangible operating improvements across revenue, cost, cash, and execution discipline, rather than market multiple expansion. It also noted that the full impact of AI is not yet translating into measurable outcomes.