Latin American Private Equity Beats Global Value Creation Rates, Trails AI Use

Private equity firms in Latin America are creating operational value faster than the global average. According to FTI Consulting's Value Creation Index, which surveyed 555 senior leaders, cash conversion and working‑capital optimisation achieve a 74% effectiveness rate versus 53% worldwide. Executive director and Brazil head Samuel Aguirre attributed the speed to high capital costs and tight liquidity, saying, "Liquidity is always tight, so there is a natural incentive to try to be agile."

Mergers and acquisitions are the second‑most‑used lever in the region, cited by 78% of respondents, following pricing strategies. Globally, M&A is moving up to become the top priority for 2025‑2026, though only 25% of managers view it as the fastest‑return tactic. High‑performing funds are 2.3 times more likely to employ standardized "playbooks" that map investment entry to exit.

Despite these strengths, AI adoption lags: only 36% of Latin American private‑equity leaders use artificial intelligence frequently, compared with 48% globally and 48% in Asia‑Pacific. Just 15% report ease of implementation versus 31% worldwide, highlighting the region’s Achilles heel in technology integration.