As we noted last year, the traditional drivers of past private equity returns (low purchase prices, multiple expansion, and cheap leverage) are largely spent. Beyond better deal sourcing (including greater entry-multiple discipline), the next decade will need to rely far more on Analysis by StepStone Group indicates that, for deals done between 2010 and 2022, leverage and multiple expansion comprised 59 percent of returns. The remaining 41 percent came from revenue growth and EBITDA margin expansion net of dividends and debt paydown (Exhibit 7). Over the past decade, however, the share of debt as a percentage of entry multiples has declined from 44 percent in 2016 to 37 percent in 2025, reflecting that GPs are relying less 0n leverage to generate returns. In addition, the increase in entry multiples over the last decade has forced managers to focus on operational improvements to achieve their target returns. As a result, operators' ability to increase top-line revenue and improve margins is increasingly 5 Entry multiples reached a new high in 2025 at 1.8times EBITDA, edging past the prior 2022 peak by lessthan 0.1turns and far exceeding the 2010 to 2022 average of 9.1times. Over the same period, debt accounted for 37 percent of entry multiples, seven percentage points below the 2010 to 2022 average of 44 percent. Together, rising multiples and lowerleverage contribution point to a reduced reliance on debt to drive returns, placing greater emphasis on value creation to achieve Global Private Markets Report 2026: Private equity-Clearer view, tougher terrain