Digital transformation is rapidly changing all three levels of private equity value creation. 

Many PE firms are already betting on what I call the digital value creation trifecta along the traditional value creation drivers - multiple expansion, operational value creation, and even debt repayment.

First, let’s take a step back. For those new to private equity, there are basically 3 ways PE firms generate outsize returns, which is called value creation. In an overly simplified way, these are: