The Reinvention Imperative
PwC’s latest CEO Survey highlights an urgent need for reinvention, driven by AI adoption, sustainability pressures, and geopolitical uncertainty. In 2025, private markets reached an inflection point: holding periods are lengthening, IPO and M&A markets remain subdued, and fundraising is concentrated among a few large firms. Regulatory scrutiny and macroeconomic volatility add further complexity.
Reconfiguring for New Domains
PwC’s Value in Motion report shows rapid economic reconfiguration is underway, with US$7.1 trillion in revenues expected to shift between companies in 2025 alone. Over the next decade, industries will reorganise around human needs, creating new domains that cut across traditional boundaries.
The most compelling investment theses will emerge at these intersections—for example, AI is transforming real estate, data infrastructure, and energy generation into an interconnected ecosystem. Private equity and real estate funds increasingly partner with specialised operators in senior care and health services to share property and service risk. Explore more in PwC’s insight: Private capital at a crossroads.
Tax: A Strategic Imperative
Every transformation—new ways of working or new revenue streams—carries tax implications. CEOs must bring tax leaders into strategic discussions. As PwC’s Global Reframing Tax Survey 2025 confirms, tax planning underpins fund structuring, value creation, and new investment areas.
“There is no doubt that tax is rightfully associated with compliance. But as tax compliance requirements evolve to become more complex and with longer outreach, not accounting for the tax angle during making strategic decisions may become very costly for businesses. So, in my view, Tax is more than compliance — it has the potential to be a connected force contributing heavily or even driving driving strategy, value creation, and successful fundraising. Adapting to regulatory shifts and looming tax changes isn’t optional; it’s essential.”
Estimating Progress
To benchmark progress on this reinvention journey, consider key questions that will help assess your company's future success and define your immediate path forward.
Key Questions for PE Leaders:
1. Is your company embracing Generative AI (GenAI) or are trust issues holding you back?
GenAI is transforming private equity by enhancing capacity, productivity, and customer experience—not just reducing costs. Two in five PE CEOs report revenue gains from GenAI, with half expecting further profit growth next year.
According to PwC’s Global M&A 2025 mid-year outlook, owner-operator funds are rapidly deploying GenAI to boost efficiency and portfolio performance. Repeatable AI solutions in call centres, knowledge management, and software development are driving speed, accuracy, and economies of scale. Larger funds are going further, using AI agents to refine deal sourcing, clarify investment theses, and even create virtual committees for scenario analysis and risk identification.
To what extent did GenAI impact the following in your company in the last 12 months?
Yet only one in three CEOs trust the technology, underscoring the need for responsible implementation.
2. Do you view climate action as a boost to your bottom line, or as a budget buster?
Sustainability is now a key driver of value creation, far beyond mere compliance. PwC’s economic modelling warns that physical climate risks could shrink the global economy by nearly 7% by 2035. Conversely, climate-friendly investments are already delivering tangible benefits: 21% of companies report reduced costs, while 51% of PE CEOs note increased revenues. Sustainability can fuel growth rather than simply add expense.
To what extent have climate-friendly investments* initiated by your company in the last five years impacted the following areas?
* Examples of climate-friendly investments include transitioning to energy-efficient operations, developing greener products and services, and implementing emission-reducing technologies
Moreover, as highlighted in PwC’s report Next in private equity: Trends shaping 2025 and beyond, investors are intensifying scrutiny of diligence processes and transformation objectives. ESG reviews now assess not only current maturity but also how sustainability will drive value during the holding period. A strong ESG profile increasingly justifies higher exit premiums.
3. Is your business doing enough to keep pace with evolving industry and customer demands?
Moreover, as highlighted in PwC’s report Next in private equity: Trends shaping 2025 and beyond, investors are intensifying scrutiny of diligence processes and transformation objectives. ESG reviews now assess not only current maturity but also how sustainability will drive value during the holding period. A strong ESG profile increasingly justifies higher exit premiums.
What proportion of your company’s revenue in the last five years came from each of the following sources? (showing mean values)
Reinvention demands greater urgency—harnessing AI, investing in sustainability, and seizing opportunities arising from the reconfiguration of industries into new domains. It also requires careful consideration of tax implications, including the competitive advantages that robust tax compliance can deliver.
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Comprehensive report CEO Survey
About the survey
We surveyed 4,701 CEOs in 109 countries and territories from 1 October through 8 November 2024, including 153 CEOs from Central and Eastern Europe. The global and regional figures in this report are weighted proportionally to individual country nominal GDP, so CEOs’ views are broadly representative across all major regions. The industry and country-level figures are based on unweighted data from the full sample of 4,701 CEOs. All quantitative interviews were conducted on a confidential basis.
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