New research from behavioural and cultural development firm Inclusion Live has revealed that private equity-backed companies with inclusive leadership practices are far more likely to achieve higher exit valuations.
The inaugural Leadership Blueprint report, which provides a practical guide for operating partners, executive teams, and HR leaders seeking to harness culture as a lever for performance and value creation in private equity portfolios, reveals that high-performing companies are over 14 times more likely to have mature inclusive leadership, and firms with the most inclusive cultures are 3.78 times more likely to generate strong exit values and swift sales.
The study also highlights the commercial imperative of culture, with 83% of respondents citing inclusion and employee wellbeing as essential for attracting and retaining talent.
Talent retention remains a pressing concern, with 49% of employees considering leaving their current role for a more inclusive culture. Leaders were found to be twice as likely as employees to feel supported to perform at their best, and four times more likely to believe their teams were empowered to contribute fully.
The research underscores the link between company culture and ESG performance, with 77% of employees stating that culture is critical to meeting environmental, social, and governance goals. Yet, misalignment between investor expectations and company priorities remains widespread, affecting 85% of respondents and often resulting in missed growth targets, higher turnover, and increased stress.
Esther Crew, Founder and CEO of Inclusion Live®, said: “Investors push for pace, leaders firefight, and teams disengage. When people feel trusted, listened to, and safe to contribute, commercial results follow. Inclusive leadership unlocks tangible value creation for PE-backed companies.”
The report provides a practical guide for operating partners, executive teams, and HR leaders seeking to harness culture as a lever for performance and value creation in private equity portfolios.
