Brookfield Asset Management's David Nowak says operational improvements will separate private equity winners from losers in 2026. Speaking at PEI Group's NEXUS 2026, Nowak emphasized that the era of easy returns is over, with rates no longer at zero and multiples not expanding. He noted that over 50 percent of Brookfield's returns come from operational enhancements rather than financial engineering.

Nowak highlighted that Brookfield has deployed $1 trillion in assets across various industries, focusing on operating businesses better to drive returns. The firm completed five deals last year, all ahead of plan, demonstrating its operational approach. Meanwhile, CCMP Capital Advisors is exploring a sale of BGIS, its 2019 portfolio company that provides commercial facilities services to over 30,000 global locations.

BGIS could fetch a $2.2 billion deal value at 12x-13x EBITDA, with infrastructure funds and business services-focused PE firms showing interest. The company's leverage profile of over 6x net debt to EBITDA reflects current market conditions. JC Flowers also announced a $200 million equity commitment to support Accelerated Wealth Partners' mission to acquire and scale Registered Investment Advisors through a partnership-led model.