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Private equity’s hidden value creation opportunity: the balance sheet

Download the 2025 EY-Parthenon PE Working Capital Report to learn how cash strategies can boost private equity value creation in today‘s market.

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About the 2025 EY-Parthenon PE Working Capital Report

Managing liquidity and working capital ranks as a key value creation opportunity for a majority of private equity (PE) general partners (GPs), EY-Parthenon data shows.

Yet many funds fail to capture trapped cash, exposing managers to more unforeseen risk compared to peers, according to a global EY survey of PE funds.

This report provides actionable insights demonstrating why PE firms that use working capital strategies in today’s volatile market can reduce costs and improve operational efficiency. Examples of EY-Parthenon work with real companies show how the balance sheet contains hidden value that can be released for multiple uses through targeted, sector-specific tactics throughout the PE transaction lifecycle.

Are you asking the right questions about cash conversion, as well as vendor and customer agreements? Do you have the right technology and tools to support teams in accounts payable, accounts receivable and inventory strategy? With PE deal volume positioned for strength in 2025, read this report to learn how improved working capital value creation in due diligence, the hold period and exit preparation can augment your portfolio strategy.

Private equity leaders surveyed indicate unforeseen risk shows up in 24% of all deals, which brings home why 73% of PE funds surveyed include working capital improvements in their base case underwriting.


Connect with us

Photographic portrait Shawn Ryan

Shawn M. Ryan
Principal, EY-Parthenon, Strategy and Transactions, Ernst & Young LLP

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Ivan Krayniy
Managing Director, EY-Parthenon, Strategy and Transactions, Ernst & Young LLP

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Federico H. Brun
Senior Director, EY-Parthenon, Strategy and Transactions, Ernst & Young LLP


Photographic portrait of Tim Dutterer

Tim Dutterer
EY Americas Private Equity Value Creation Co-Leader

Photographic portrait of Patrick Quay

Patrick Quay
EY Americas Strategy and Transactions Private Equity Leader

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Amy Daly
EY Americas Private Equity Consulting Leader