This report highlights critical risks facing private equity (PE) firms and their portfolio companies, as identified by 1,215 global executives in Protiviti’s 2025 Executive Perspectives on Top Risks Survey. The survey reveals that cyber threats have emerged as the top operational risk, surpassing economic concerns, which now rank second due to inflationary pressures and rising labor costs. Executives are increasingly worried about the ability to attract and retain talent, especially amid an evolving workforce landscape and the rapid adoption of artificial intelligence (AI), which is reshaping job roles and necessitating new skills. This industry-specific report emphasizes the need for PE firms to enhance cybersecurity measures, driven by heightened regulatory scrutiny and the growing risk of cyberattacks targeting sensitive financial data.  

Additionally, the impact of macroeconomic conditions, such as slowing global GDP and potential regulatory changes, poses long-term challenges. PE firms must navigate these risks while focusing on value creation and operational efficiency within their portfolio companies, employing strategies like automation and strategic mergers and acquisitions to counteract economic headwinds. The findings underscore the interconnectedness of these risks, suggesting that effective management will require a comprehensive approach that balances innovation with risk mitigation. As the industry adapts to these challenges, those firms that successfully integrate AI and bolster their cybersecurity frameworks are likely to maintain a competitive edge in the evolving market landscape.