Our unique platform data, extracted from over 2,000 board performance reviews reflecting feedback from chairs, board members and investment professionals in private equity firms across Europe, suggests a growing disconnect between strategy and execution. Confidence in having the right strategy for value creation has reached an all-time high, with 91% of respondents in 2024 agreeing, up from 84% in 2022. Yet, confidence in staying on track has dropped sharply from 80% in 2023 to 70% in 2024. This signals a clear execution gap. Private equity boards seem confident they have the right plan, but delivering on it remains a challenge.

Why execution is the new differentiator

Several factors contribute to this issue. PE firms are shifting away from reliance on leverage and multiple expansion towards operational improvements and organic growth. This transition requires private equity boards to take a more active role in execution, ensuring alignment between management teams and investors.

Execution has now become a key differentiator. The best-performing PE firms focus on aligning management teams and boards to ensure strategic execution, not just planning. This requires real-time tracking of key performance indicators (KPIs) and the ability to adjust quickly as needed.

Stronger governance structures are also essential for success. Effective boards accelerate decision-making, helping firms adapt quickly to market changes. Our view is that PE firms that can pivot rapidly based on performance data will have a competitive edge in value creation.

How private equity boards can close the execution gap

Bridging this gap demands a shift in boardroom dynamics. Effective boards don’t just sign off on strategy—they own the stewardship of value creation, challenge assumptions, track execution relentlessly and pivot when necessary. This requires fostering a culture of open dialogue, leveraging data-driven insights to monitor progress and ensuring governance structures enable fast, informed decision-making.

The relatively high percentage of neutral responses (respondents that neither agree or disagree) in our data—16% for execution tracking in both 2022 and 2024, and 9% to 5% regarding strategy confidence—suggests an underlying hesitation or uncertainty among board members. This could reflect a lack of real-time visibility into execution, unclear benchmarks for success, or internal misalignment on strategic priorities. Boards must address this ambiguity by strengthening communication, enhancing performance tracking and ensuring data-driven insights facilitate decisive actions.

As private equity firms embrace new value creation models, board oversight has never been more critical. The question is—does your board have the agility, transparency and oversight to turn strategy into action?

About this research

Our data is extracted from nearly 2,000 board reviews conducted on the BoardClic platform. The platform includes feedback from 7,000 board members across 600 organisations in 50 countries worldwide.

This specific dataset, which focuses on execution tracking and strategy confidence in private equity boards, is drawn from board performance reviews conducted on the platform between January 1, 2022, and December 31, 2024. It reflects the opinions and attitudes of chairs, board members and investment professionals in private equity across Europe. In total, 1,132 individuals responded to the question about execution tracking and 734 individuals responded to the question about strategy confidence.

If your board is struggling to translate strategy into action, BoardClic provides the insights and tools needed to bridge the execution gap and drive measurable value creation. Click here to explore our solution BoardClic for Private Equity or talk to one of our experts today.

Sources:

Bridging private equity’s value creation gap – McKinsey & Company:
https://www.mckinsey.com/industries/private-capital/our-insights/bridging-private-equitys-value-creation-gap

Closing the gaps in portfolio company board effectiveness – KPMG:
https://kpmg.com/us/en/board-leadership/articles/2022/portfolio-company-board-effectiveness-survey.html

How PE CFOs create value through all five stages of the investment lifecycle – EY:
https://www.ey.com/en_gl/insights/private-equity/five-stages-of-private-equity-cfo-value-creation