The Value Creation Guide for Private Equity

Where enterprise value actually comes from in a hold, and how to capture it — the operating moves that expand EBITDA, written from inside the work.

Value creation is what a hold is for. This guide collects the operator’s view of where enterprise value actually comes from in private equity — the operating moves that expand EBITDA, and the discipline of the first hundred days, written from inside the work rather than from a deck.

It reflects a shift the best sponsors have already made: from financial engineering to operational alpha as the primary source of returns.

Why operational alpha is the new source of returns

Multiple expansion and leverage carried private equity for a generation. In a higher-rate, more competitive market, the durable returns increasingly come from operating the business better — the harder, less glamorous work of value creation.

That means a specific thesis, a disciplined first hundred days, and an operating model that carries the plan through the hold to a clean exit.

What this guide covers

  • Where value genuinely comes from, beyond financial engineering
  • The first 100 days and the operating model that follows
  • How organisations create, or destroy, value at scale
  • The execution and performance systems behind the plan
  • Building resilience so the thesis survives contact with reality

The Value Creation library

Every deep dive below is a full article. Grouped by where value is made.

The thesis & where value comes from

The first 100 days & operating model

Scaling & organizational resilience

Where Growth Shuttle comes in

When a portfolio company needs the value-creation plan diagnosed and costed, that is where Growth Shuttle comes in — a portfolio company audit that names the constraint and sequences the 100-day plan against the thesis.

Common questions

What is operational alpha?

Value created by running the business better — revenue, cost, and operating improvements — rather than by leverage or multiple expansion. It is increasingly where hold-period returns come from.

What should the first 100 days focus on?

Diagnosing the real constraint, stabilising the team and customers, and sequencing the few moves that move EBITDA most — not doing everything at once.

How do you measure value creation?

Against the specific number in the thesis. Every intervention is tied to its impact on EBITDA and enterprise value, not to activity.