Key Takeaways
- • Summit Leadership Partners survey of 176 private equity partners finds 52% say the CEO role can change enough that the leader may no longer fit the company's current stage, the most-cited challenge.
- • 39% of PE leaders name a CEO who was right for an earlier stage but could not scale with the company among their top three reasons for replacement, the most widely cited replacement driver.
- • 62% say their most successful investment was driven mainly by CEO and leadership factors, while 54% say the same about their most challenging investment.
- • Four in five PE leaders call AI a core or primary value-creation lever, yet only 31% say their CEOs are managing AI transformation very effectively.
- • The findings point to sponsors shifting from selecting a CEO at investment to continuously reassessing whether the leader still fits as the business evolves.
Summary
Summit Leadership Partners, a leadership advisory firm working with private equity sponsors and portfolio-company CEOs, released "The Right CEO for the Moment: What Private Equity Leaders Say Separates CEO Success From Struggle" on October 21, 2026. The report draws on a survey of nearly 200 private equity partners and interviews with experienced PE-backed CEOs with numerous successful exits. The survey was fielded in August 2026 by Rabin Roberts Research, an independent market research firm, and includes responses from 176 PE partners. Interviews were conducted with six PE partners and five PE-backed CEOs.
The central finding is that the fit between a CEO and a company is not fixed at hire. According to the report, that fit shifts as the business scales, strategy evolves, and hold periods extend. Longer holds and stalled exits are stretching CEO tenures beyond what many sponsors expected, while AI is changing what portfolio companies require from their leaders. The most cited challenge is the evolving role itself, with 52% of respondents saying the CEO role can change enough that the leader may no longer be right for the current stage. CEO burnout (46%) and fading relevance of the CEO's original strengths (44%) followed.
On replacement, the survey found that outgrowing the role is the most widely cited reason: 39% of PE leaders name a CEO who was right for an earlier stage but could not scale among their top three reasons. Missed targets and other performance issues also matter. The report notes there is no universal profile of a strong PE-backed CEO, and no single leading capability draws more than 30% at any stage. One-third of respondents say strong CEOs focus on the few priorities that move value under pressure.
Leadership was described as decisive in both directions: 62% said their most successful investment was driven mainly by CEO and leadership factors, and 54% said the same of their most challenging one. On AI, four in five respondents call it a core or primary value-creation lever, and about two-thirds formally evaluate a CEO's ability to lead AI initiatives. However, only 31% say their CEOs are managing AI transformation very effectively.
Summit's Dan Hawkins, Founder and CEO, said, "Few decisions carry more weight in a private equity investment than who is sitting in the CEO seat, and the job rarely stays the same from close to exit." Liz Salib, PhD, Principal Consultant at Summit, added that "a CEO can be highly capable and still be mismatched to what the company now needs." The report recommends that boards and sponsors regularly revisit CEO fit, particularly at major transitions, to identify emerging risks earlier and support leaders before performance deteriorates.
The central finding is that the fit between a CEO and a company is not fixed at hire. According to the report, that fit shifts as the business scales, strategy evolves, and hold periods extend. Longer holds and stalled exits are stretching CEO tenures beyond what many sponsors expected, while AI is changing what portfolio companies require from their leaders. The most cited challenge is the evolving role itself, with 52% of respondents saying the CEO role can change enough that the leader may no longer be right for the current stage. CEO burnout (46%) and fading relevance of the CEO's original strengths (44%) followed.
On replacement, the survey found that outgrowing the role is the most widely cited reason: 39% of PE leaders name a CEO who was right for an earlier stage but could not scale among their top three reasons. Missed targets and other performance issues also matter. The report notes there is no universal profile of a strong PE-backed CEO, and no single leading capability draws more than 30% at any stage. One-third of respondents say strong CEOs focus on the few priorities that move value under pressure.
Leadership was described as decisive in both directions: 62% said their most successful investment was driven mainly by CEO and leadership factors, and 54% said the same of their most challenging one. On AI, four in five respondents call it a core or primary value-creation lever, and about two-thirds formally evaluate a CEO's ability to lead AI initiatives. However, only 31% say their CEOs are managing AI transformation very effectively.
Summit's Dan Hawkins, Founder and CEO, said, "Few decisions carry more weight in a private equity investment than who is sitting in the CEO seat, and the job rarely stays the same from close to exit." Liz Salib, PhD, Principal Consultant at Summit, added that "a CEO can be highly capable and still be mismatched to what the company now needs." The report recommends that boards and sponsors regularly revisit CEO fit, particularly at major transitions, to identify emerging risks earlier and support leaders before performance deteriorates.
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