July 2026 Report:
Private Equity 2026 Mid-Year Outlook

Private equity has entered an era of greater dispersion. Explore how the “upside and threat of AI” have arrived together for the industry, the imperative for firms to drive operational value creation to land on the right side of divergent outcomes, and how LPs are leveraging performance attribution to refine commitments.

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What’s inside the report
  • Moving into the second half of 2026 and beyond, dispersion and the ability to consistently land on the right side of it are emerging as the defining themes for private equity investors.
  • For software-focused sponsors, underwriting in the current environment requires a granular assessment of where disruption is likely to materialize, which requires codifying insights from existing portfolio companies via collecting financial metrics, KPIs, and qualitative signals on AI exposure and resilience.
  • With less room to absorb execution shortfalls, sponsors are likely to place greater emphasis on intervention-oriented portfolio management, using post-investment monitoring to identify KPI deviations before they materially affect EBITDA.
  • Performance attribution is top of mind for LPs.  Allocators face an imperative to distinguish managers generating returns through genuine operational execution from those reliant on benign market conditions and allocate capital to firms with the acumen to sustain performance.
  • Investors are increasingly turning to AI as the next frontier of investment and operational alpha, using the technology to enhance portfolio company performance and drive fund-level efficiencies, insights, and workflows.

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“Chronograph’s flexible data collection and reporting technology has enabled us to harmonize KPIs and deepen insights across our portfolio. Our investment, value creation, and finance teams can all easily collaborate with consistent and trusted data.”

“As secondaries investors, we are investing in hundreds of funds and thousands of companies. This means our data scales up in a very rapid way. We’ve found that unlocking our data and prioritizing its value in our investment cycle has helped us become better investors.”

“Chronograph acts as a critical hub for our data collection, valuation, and reporting processes. We are constantly collaborating with the Chronograph team to discover new capabilities and expand our use case.”

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