Maximizing exit value amidst market uncertainty: A blueprint for private equity firms 

Can private equity firms and their portfolio companies succeed in the face of unpredictability? The short answer is yes—with agility.  

Key takeaways 

• Private equity firms improve exit outcomes by embedding agility early in their portfolio companies’ operations. 
• Breaking down silos and modernizing technology unlocks operational value and strengthens collaboration. 
• Developing adaptive leaders accelerates decision-making and boosts resilience amid market uncertainty. 

The exit landscape for private equity (PE) firms in 2025 is as complex as it is evolving. From navigating geopolitical turmoil to accommodating rising buyer expectations, PE professionals face mounting pressure to deliver value and position portfolios for exit. The days of relying solely on traditional strategies like mergers and acquisitions (M&A) or initial public offerings (IPOs) are fading. Today’s market demands more agility, readiness, and innovation than ever before. 

Backed by insights from the latest research in Highspring’s Agility Index, this article takes a closer look at how PE firms can better prepare for exits in uncertain environments. By integrating agility from the start and addressing structural barriers—like siloed departments or underdeveloped technologies—PE firms can not only help their portfolio companies withstand uncertainty. They can turn it into a competitive edge. 

In this blog:

• A shifting landscape for private equity exits 
• Agility: A critical tool for navigating uncertainty 
• Breaking down organizational barriers 
• Long-term growth depends on a forward-looking talent strategy 
• Embedding agility in your portfolio companies  
• Setting the stage for successful exits 
• Turning agility into a competitive advantage 

A shifting landscape for private equity exists

Over the last 2-3 years, rising interest rates and geopolitical uncertainties have led many PE firms to extend their holding periods beyond the traditional three to five years. This extension has resulted in a substantial backlog of assets poised for exit. In fact, Reuters reports that PE firms are collectively managing about $3 trillion in unsold assets, tying up capital that can’t be redeployed elsewhere. Now, with capital markets gradually reopening and multiples stabilizing in certain sectors, firms are reevaluating their exit strategies to unlock value.   

Today’s exit playbook extends beyond traditional M&A and IPO planning. The current environment presents new areas of focus for PE operators, and firms must now look beyond traditional exits like sales to other PE firms or corporate buyers. The landscape now includes alternative strategies to provide liquidity, including carve-outs, continuation funds, and secondary transactions. In 2024, continuation funds accounted for 13% of sponsor-backed exit volume, reflecting their growing acceptance as a viable exit strategy. This broader set of options demands a more robust approach to exit planning from both operators and investors.   

Agility: A critical tool for navigating uncertainty 

Agility is defined as momentum, balance, and control at the moment of change. It can be measured across important behaviors like decision making, communication, and adaptability. Highspring’s research underscores that agility is the key to resilience—and the secret’s out: Agile organizations outperform their less agile peers, especially in times of uncertainty. 

And the data supports this. Insights from 517 companies—including top private equity firms—show that high agility drives better operations, sharper communication, bolder risk taking, and faster revenue growth. For PE firms, the data points to two clear takeaways: 

1. PE scores high on agility metrics. PE firms lead most industries across timely decision-making, resource reallocation, scalability, and addressing customer feedback. 
2. There’s still room for growth. PE firms struggle with siloed departments, hindering their ability to modernize core work processes and technology. This weak spot introduces inefficiencies, especially when preparing for exits. 

The data paints a clear picture: Without agility, organizations that succeed today may struggle tomorrow. For PE firms preparing for exits, agility plays a critical role across three specific areas: 

1. Agility accelerates exit planning

Exit preparation today requires earlier planning and tighter coordination. With agility, PE firms can: 

• Scenario plan by developing dual-path strategies that allow quick pivots between M&A, carve-outs, or IPOs based on shifting market conditions. 
• Optimize portfolios by identifying and divesting non-core assets more efficiently to sharpen focus and enhance returns. 

2. Agility improves operational performance 

Strong operations during the holding period often translates into higher valuations. High-agility firms stand out by aligning talent strategies, integrating scalable tech, and encouraging stronger collaboration across teams. The impact is clear in our data: 

• 90% of high-agility organizations say their talent strategy aligns with business goals. 
• Just 25% of low-agility organizations report the same—eroding buyer confidence during exit negotiations. 

3. Agility strengthens risk response 

In today’s unpredictable environment, agility helps PE firms adapt quickly to changing conditions—from new tariffs to evolving buyer expectations. It supports rapid budget reallocations, team adjustments, and strategic shifts to manage risk and protect value. 

The Agility Index reinforces this point: Agile organizations experience half as many layoffs as low-agility firms, highlighting agility’s role as a risk management tool in uncertain markets. 

Breaking down organizational barriers  

Despite its importance, agility is often blocked by internal obstacles like siloed departments, outdated tech, and slow decision-making. Highspring’s research uncovered two clear challenges for PE firms: 

• Siloing remains widespread: Only 17% of respondents say their departments operate without silos, with executive leadership and human resources (HR) cited as the most disconnected. 
• Tech modernization lags behind: PE firms report difficulty in updating core systems, limiting their ability to scale operations across portfolios effectively. 

Long-term growth depends on a forward-looking talent strategy  

A hallmark of strong PE leadership is the ability to constantly evaluate: What does good look like? One example comes from a $1 billion publicly traded company transitioning to private ownership under a leading PE firm. The transformation required detailed talent mapping to identify skill gaps, assess leadership capabilities, and ensure alignment with the firm’s vision to scale from $1 billion to $3 billion. Some steps for developing agility through talent strategy include: 

• Identifying leadership gaps early in the investment cycle and communicating expectations clearly. 
• Elevating collaboration skills by developing leaders who excel in cross-functional interactions with clarity, patience, and trust. 
• Implementing systems assessments to validate the right technology tools are in place to generate real-time insights and faster decision-making. 

Interim leadership solutions maintain momentum  

Interim executive placements bridge leadership gaps while offering fresh, unbiased insights. They help preserve institutional knowledge passed on from the outgoing executive and bring a renewed commitment to advancing strategic initiatives—all with minimal disruption to daily operations.  

Interim executives are held to nearly the same standards as permanent hires, but their placement allows for faster onboarding and knowledge sharing. This investment helps businesses avoid pausing critical initiatives and keeps leadership teams accountable for delivering results and progressing toward the value creation plan. 

Collaboration skills aren’t negotiable for leaders 

When sourcing executives, it’s important to prioritize leadership profiles that demonstrate: 

• Clear, adaptive communication that translates complex concepts across departments. 
• Proactive knowledge sharing that avoids gatekeeping and fosters trust and efficiency. 
• A people-first mindset that promotes open communication and team support. 

In a recent placement Highspring supported, internal silos between accounting and financial planning and analysis (FP&A) teams had led to duplicated efforts rooted in mistrust. By introducing a collaborative leader, they helped break down barriers, streamline roles, and reach mutual accountability—ultimately saving the company time and resources. 

Embedding agility into your portfolio companies  

To create long-term value, PE firms must prioritize agility within their portfolio companies from the start. Embedding agility early helps increase valuations and paves the way for stronger exits. Building a roadmap for agility starts with three critical steps:

1. Diagnose. Identify where agility thrives—and where it stalls. Use agility banding to assess teams, functions, and leadership levels, while looking for friction and misalignment. 
2. Design. Create initiatives that embed agility from the start. Focus on leadership enablement, team structure, learning and development, and technology that supports seamless collaboration. 
3. Execute. Make agility measurable by integrating it into key performance indicators (KPIs), reward systems, and ongoing feedback loops. Use these to track outcomes like retention, morale, and delivery speed. 

Agility drives long-term success by improving speed, clarity, and alignment. To overcome common roadblocks and embed agility effectively, PE firms position their portfolio companies to: 

• Break down silos by promoting cross-functional collaboration and implementing integrated digital platforms. 
• Invest in scalable technology that simplifies reporting, resource management, and operational insights. 
• Develop adaptive leaders by training executives to navigate uncertainty and lead with confidence. 

Setting the stage for successful exits 

Private equity success in 2025 requires moving away from reactive strategies. Agility provides proactive tools to not only navigate uncertainty but turn it into an opportunity: 

• Higher agility means better preparedness for unforeseen challenges during the exit process. 
• Agility amplifies long-term value through operational improvements, not just
  short-term speculative gains. 
• It fosters a culture of transformation, helping PE-backed companies stay competitive and attractive to buyers or public markets. 

The takeaway? Agile portfolio companies won’t just be better positioned for high-value exits—they’ll help reshape the PE playbook for the future. 

Turning agility into a competitive advantage  

Agility isn’t just a concept. It’s a measurable, actionable strategy for addressing PE’s toughest challenges. PE-backed companies that embed agility into their operations experience real results across every measure—from smoother exits to stronger revenue and employee retention outcomes.