Investors spend endless hours on markets, multiples, and models
Investors spend endless hours on markets, multiples, and models.
But the real edge is often hiding in plain sight — leadership.
Teneo’s research found that 94% of GPs believe leadership drives more than half of returns — yet few allocate meaningful time or capital to measuring it. That disconnect is where mistakes compound.
At Eagle Talon, we see the same pattern: companies with average strategies but exceptional leaders often outperform. The reverse is rarely true. Leadership isn’t an intangible — it’s a core driver of enterprise value.
→ Leadership accounts for ~53% of value creation in PE-backed firms
→ Few investors systematically measure or optimize it
→ Leadership due diligence remains one of the last underpriced sources of alpha
We treat leadership assessment like any other discipline — structured, rigorous, and tied to outcomes. Ignoring it isn’t just a blind spot. It’s a liability.
👉 How much weight do you give leadership when judging long-term value creation?
🔗 Read more: Leadership Alpha in Private Equity