In the latest whitepaper, Omnigence examines the structural shift in private equity from financial engineering toward systematic operational value creation. As purchase price multiples rise and leverage becomes less accretive, leading firms are building dedicated operating capabilities designed to drive EBITDA growth, working capital efficiency, and sustained productivity improvement within a 3–7 year hold period.
The report outlines how Kaizen culture-building, Six Sigma execution, and Lean system redesign can deliver measurable financial impact while embedding durable competitive advantage inside portfolio companies. In lower middle market businesses, where operational infrastructure is often underdeveloped, disciplined continuous improvement programs can meaningfully expand margins and enterprise value.
For institutional allocators, operational capability has become a critical lens in GP due diligence. Demonstrated operating partner track records, codified and repeatable methodologies, and validated portfolio outcomes increasingly differentiate sponsors in competitive markets. Operational excellence is no longer ancillary to the investment thesis. It is a primary and defensible source of long-term alpha.