Private equity firms have adjusted deal structures to accommodate sustained interest rates. Leveraged buyouts have slowed sharply, giving way to operational value-add strategies and targeted tuck-in acquisitions.
Operational Engineering Focus
Sponsors are prioritizing revenue quality and EBITDA margin enhancement over multiple expansion. General partners are embedding specialized operational teams within portfolio companies to stream supply chains and lower overhead.
Rise of Private Credit
With traditional syndicate banks scaling back risk exposure, private debt funds have captured significant market share, providing customized unitranche financing at higher yields.