Nearly 70% of CEOs in private-equity–backed companies get replaced during the hold period

Most don’t survive the first 12 months.

Let that sink in.

A recent-ish study of large U.S. buyouts found that 71% of companies hired a new CEO under PE ownership.
(Source: Gompers, Kaplan & Mukharlyamov “The Market for CEOs: Evidence from Private Equity,” 2022/2023)

And PE leadership surveys show that ~60% of those changes happen in Year 1.
(Source: AlixPartners, 9th Annual PE Leadership Survey, 2024)

So........

What is broken in private equity that allows this to happen?

Is it the diligence?
The underwriting?
The expectations PE sets on Day 1?
Or is it the simple reality that many firms don’t actually know what “good” looks like in the CEO seat?

Because if nearly seven out of ten CEOs fail under PE ownership, that’s not a CEO problem.
That’s a system problem.

And the financial cost is only half the story.
The real damage is the lost momentum, cultural whiplash, and strategic drift that stalls growth right when the value-creation clock starts ticking.

So here’s the question every PE firm should be asking:

If leadership is the single greatest lever in value creation… why is it still the most neglected discipline in the industry?