The Future of Value Creation: 4 Human Capital Trends Every PE Firm Should Watch in 2026

In today’s competitive deal environment, private equity firms are rethinking their approach to value creation – from how they source opportunities to how they build and support leadership teams post-close. With traditional levers under pressure, the most forward-thinking investors are expanding their toolkit: leveraging pre-deal advisors, redefining operating partner roles, reimagining compensation structures, and constructing more strategic boards. Each of these shifts reflects the new reality; winning in this market requires sharper alignment between capital, leadership, and strategy.

1. Pre-deal advisors  

An emerging trend is working with pre-deal advisors. Often former CEOs and operators, these leaders possess industry expertise and deep networks that can help firms identify, diligence, and close a deal. In a competitive market, these executives can be the differentiators connecting firms to less known contacts, assets, or intelligence to help get the deal done. 

2. Expanded roles of operating partners  

The role of the operating partner continues to evolve. We expect to see more functional experts join at the fund level to help with value creation. The role of human capital extends far beyond just hiring, so operating partners will need to continue to be present in talent development and succession planning.  

3. Creativity in Incentives and Compensation  

Deal flow and the lack of exits has forced teams to get creative around compensation to attract and retain talent. With deals out of sight, many executives have considered staying or leaving for new opportunities. Firms have also considered  transitioning talent. We expect to see firms exploring options for refreshing equity that reward performance and decouple talent from liquidity events. Creative packages around severance and milestones tied bonuses are popular for recruiting top leaders.   

4. Strategic Board Composition  

More than ever, we are seeing portfolio companies and investors to prioritize building boards strategically, which include a combination of well-rounded industry expertise, operational experience, and market knowledge. Whether  board members help support tech innovation or possess adjacent sector expertise, constructing a board that provides the leadership team with guidance from multiple angles will be a differentiator.  

In today’s tight market, from deal origination through exit, success increasingly depends on the strength, creativity, and cohesion of the people behind each decision. By cultivating the right advisors, operating partners, incentives, and boards, investors can unlock unmatched value.