The contextWhy PE firms are rethinking traditional value creation models
Compressed hold periods, rising operating costs, and increasingly competitive exits are making it harder for private equity firms to drive outsized returns through traditional operating levers alone.
As a result, leading firms are shifting focus toward operating model transformation during the hold period. One area gaining momentum is global talent.
More PE firms are moving 30-50% of engineering and IT talentIndustry benchmark: 50%+ of leading PE firms already at this level into global capability centers (GCCs) and global delivery hubs to expand operating capacity, improve execution speed, and build more scalable portfolio companies before exit.
The financial caseWhat globalization actually delivers to the P&L
The numbers tell a more compelling story than most firms expect.
Many globalization models reach steady state within 6-9 monthsFast-track GCC: USD 10 Mn annual run-rate savings at 100 FTEs, with operational savings flowing directly into EBITDA during the hold period.
And the savings extend well beyond the labour cost differential.
Talent cost optimization
through shift to low-cost locations
~50%
Productivity & quality
improvements from centralization
+10%
Efficiency gains through
Automation and AI
+15%
Total estimated run-state impact
~75% savings at steady state
~75%
Total est.
~75% savings
(run time)
The executionHow leading PE firms are operationalizing globalization
Execution remains the biggest differentiator.
While many firms still approach globalization through fragmented outsourcing efforts or delayed post-close initiatives, leading PE firms are building structured globalization strategies much earlier in the portfolio lifecycle.
This report explores:
- What to evaluate in the first 30 days post-close
- How to structure GCCs alongside outsourcing models
- How to accelerate time-to-value and compress exit timelines
- How GCCs evolve into portfolio-wide value creation engines
