PE Pulse 2026: AI and Value Creation Lead in Weak Market (L.E.K. Consulting)

Summary

• AI usage generates an average 28% productivity improvement, with Claude identified as the most used tool by 57% of respondents.p.1
• A majority of investors view market conditions as challenging, with 61% describing conditions as weak and 72% taking a selective approach to capital.p.2
• Financing and deal flow quality vary significantly by sector, with TMT recording a net improvement score of -47 for deal flow quality compared to +6 for healthcare.p.3
• Add-on acquisitions serve as the leading operational lever for EBITDA improvement, cited by 40% of respondents as their primary driver.p.4
• Alternative liquidity tools are widely evaluated, with 56% of firms considering dividend recapitalizations and 54% evaluating continuation vehicles.p.5

Key insights

1. AI deployment delivers an average productivity gain of 28% across surveyed private equity organizations, led by Claude usage at 57%.p.1
2. Only 21% of private equity professionals assess their personal AI expertise as advanced or leading edge.p.1
3. TMT sector investors experience severe financing headwinds, reporting a net improvement score of -74 for debt availability.p.3
4. Add-on M&A serves as the primary driver of portfolio EBITDA improvement for 40% of surveyed investors.p.4
5. To generate liquidity without selling at discounted prices, 56% of respondents evaluated dividend recapitalizations in the past 12 months.p.5