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JVs have emerged as the deal strategy of choice for organizations aiming to outpace disruption while minimizing risk, and CEOs are increasingly pursuing JVs and strategic alliances as complementary pathways to transformation. The EY-Parthenon CEO Outlook data shows that 45% of CEOs plan to engage in these initiatives in 2026.
According to a recent EY-Parthenon assessment, JV activity in the US has doubled as leaders seek capital-light pathways to scale, innovate and win in volatile markets. But while the potential benefits are enormous, executing successful joint ventures requires a diligent approach to managing risks and aligning diverse partners.
Our assessment showed that most effective ventures cross sector lines, uniting unlikely allies to solve complex challenges and spark innovation. Over the past five years, an astounding 77% of new US-based JVs have brought together partners from different industries. This is not just a trend; it is a seismic shift in how companies pursue growth.
Sector Convergence across JVs (2021–2025)
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Read moreRoughly half of all JVs involve at least one partner from technology, media & entertainment and telecommunications (TMT), industrials and energy sectors, highlighting a strong preference for capital-intensive industries. These sectors have dominated JV partnerships across the past 5 years, indicating a strong correlation with AI driven capital investments in these industries.
TMT and industrial and energy are key sectors for JVs due to their capital-intensive nature and frequent involvement in large-scale projects requiring significant financial investment and skilled labor.
In sectors like TMT, companies are constantly seeking to innovate and develop cutting-edge technologies. JVs allow them to merge their tech expertise and resources, creating market-leading solutions while sharing risks.
Companies in industrials and energy sectors, as well as TMT, often face complex, geographically dispersed operations. They use JVs to streamline operations, reduce costs and boost efficiency across diverse locations.
Sector Mix of JVs in % share (2021 - 2025)
Convergence clusters in four sectors are leading the way in innovation:
With the rise of multi-industry alliances, it is crucial to consider the factors driving this momentum. The following section delves into the reasons behind the growing popularity of JVs and the strategic advantages they offer to companies navigating a disruptive environment.
JVs in the US continue to be strategically important
Companies are continuing to use JVs as capital-light vehicles to de-risk growth, access capabilities such as AI, advanced manufacturing and accelerate time-to-market.
JV activity was disrupted during COVID-19 as companies reassessed the changing global landscape and normalized as markets stabilized. JVs are now rebounding amid economic uncertainty and AI disruptions. The chart below reflects the impact of key events such as supply chain rewiring, digitization, energy transition, geopolitical uncertainty and major infrastructure initiatives. Elevated JV formation is likely to continue, especially in sectors where scale, platform advantages or regulations make shared ownership attractive.
JV success
While JV activity is expected to increase, it’s important to recognize that not all JVs are successful. Many JVs fail to meet their strategic or financial objectives. Therefore, it’s crucial that organizations are prepared to tackle common challenges and JV failure risks, which start with establishing clear joint goals from the outset, fostering open communication and implementing robust governance frameworks that facilitate collaboration and accountability. Regular performance reviews and a willingness to adapt strategies as circumstances change also help make sure that the JV stays on track and achieves its intended outcomes.
While proactive management is essential, not all JVs reach their intended goals. To better understand where ventures fall short, the following discussion identifies common pitfalls and practical measures for bridging execution gaps.
Why JVs miss and how to close the gap
JVs often miss their targets due to misaligned objectives, cultural clashes and unclear governance structures between partnering organizations. These gaps can result in conflicting priorities and slow decision-making, ultimately undermining the venture’s success.
Practical mitigations should be embedded directly into the JV term sheet, JV agreement and Day 1 operating plan to address the most common sources of risk from the outset. By selecting the right JV structure to align with the strategic priorities and proactively designing financial, operational and governance safeguards up front, companies can better position their JVs to withstand challenges and deliver sustained value.
Identifying potential risks is just the beginning. In the next section, we explore various types of joint ventures and share real-world case studies that demonstrate how strategic planning and strong alignment can turn challenges into successful outcomes.
Overview of JV types and successful industry applications
The structure and nature of a JV can vary widely depending on the specific goals, risk profiles and capabilities of the involved parties. In the tables below, we outline four primary types of JVs — financial, risk sharing, capability-sharing and operational — highlighting when each approach is most suitable and what its typical characteristics are.
Additionally, we provide case studies below that illustrate how these JV models have been successfully implemented in diverse industries, ranging from semiconductor manufacturing and pharmaceuticals to hydrogen energy and oilfield services. These examples demonstrate the critical role that thoughtful structuring, financial planning and operational integration play in unlocking value and achieving strategic alignment within JVs.
Lessons from an end-to-end successful JV case study
A global healthcare services company partnered with a leading health system’s nationally recognized specialty care platform to form a JV focused on expanding high-quality, community-based specialty care. The objective was to combine enterprise scale capabilities in distribution, data and practice support with deep clinical knowledge and physician leadership — while preserving care quality, operational flexibility and compliance.
The transaction required aligning partners with fundamentally different operating models and incentives, balancing clinical autonomy with commercial scale and designing governance and economics that could withstand regulatory scrutiny while supporting long-term growth. Key complexities included joint control, incentive alignment across physicians and corporate stakeholders and integration of infrastructure without disrupting patient care.
Our EY-Parthenon team advised on end-to-end JV design, structuring governance, economics and the operating model in parallel to compress time to launch and reduce execution risk.
The partnership successfully launched the specialty care JV with clear decision rights, scalable economics and a durable platform for growth. It’s viewed as a benchmark for clinically led, strategically structured healthcare partnerships.
Unlocking new markets: JVs empower organizations to lead
JVs are more than financial arrangements — they are engines of innovation and resilience. In an era of high AI-driven capex requirements and volatile geopolitical environment, cross-sector partnerships empower organizations to drive innovation, share risks, pool resources and unlock new markets. Success demands creativity, strategic alignment and built-in safeguards. For today’s CEOs, JVs are not just about surviving uncertainty — they’re about thriving through it.
Rahul Kumar of Ernst & Young LLP (India) contributed to this article.
JVs can drive growth amid economic uncertainties by allowing companies to share risks, pool resources and leverage complementary strengths. They are particularly effective for long-term infrastructure and R&D projects, often serving as a faster route to market. Various types of JVs exist, including capability-sharing, operational, risk-sharing and financial JVs, each suited to different objectives. As sector convergence rises, JVs enable companies to innovate and diversify beyond their core sectors. However, successful joint ventures require clear roles, thorough financial planning and proactive risk management to navigate challenges and achieve strategic objectives.
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