Why now is the moment for active value creation and smart exit strategies

The geopolitical disruptions, new tariff barriers and the backlash of the capital markets after a brief optimism at the beginning of the year pose massive challenges for the private equity industry. But as the current Bain Company Midyear Report 2025 shows, new opportunities for proactive investors arise precisely in this uncertainty – especially in the MA segment.

While the classic exit path via IPO or strategic sale is currently stalling in many cases, operative levers, deep due diligence and smart portfolio management are once again taking on central roles.

Private equity under pressure – and under compulsion to act

The first quarter of 2025 was characterized by a positive mood: cheaper debt, falling inflation, solid buyout activities. But with the trade policy developments from April, the market has entered a new phase:

  • Deal volume and transaction number in MA have noticeably collapsed in the second quarter,
  • IPO window almost closed,
  • Liquidity at LPs increasingly strained,
  • and fundraising at a historic low.

For many General Partners (GPs), the pressure is mounting to restore capital flows despite weak exit conditions. This increasingly leads to trade-offs between return and liquidity – and opens up space for targeted deals with operative potential.

Efficiency instead of valuation: New levers in value creation

Since valuation expansions are hardly possible, the focus is shifting to operative improvement. This applies to existing portfolios as well as to new targets:

  • Cost efficiency and EBITDA increase are moving into the center of the equity story.
  • Generative AI is increasingly being used as a lever in commercial due diligence, market modeling and strategic realignment.
  • Exit strategies require clear progress – and convincing growth narratives with substance.

Our Services for PE Companies at a Glance:

Buy-Side Advisory

  • Identification and direct approach of attractive targets in the Small MidCap segment (also outside the visible deal flow)

  • Carve-Out special knowledge, also in connection with succession or special situations

Sell-Side Advisory / Exit Support

  • Investor-logical preparation of portfolio companies for exit – structurally, financially, strategically

  • Buyer-side thought-out positioning towards PE and strategists, even in less favorable market environment

  • Efficient process management from Confidential Teaser to LOI – transparent, focused, confidential

Contact the experts at starkpartners now without obligation.


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