In the news. After a multiyear slowdown in private equity (PE) exits, private credit firms are selling debt to themselves to improve cash flow. The Financial Times reports that private lenders inked $15 billion in such continuation deals in 2025, nearly quadrupling the value from the year before. Through these secondary transactions, lenders can return cash to investors even without private equity exits. The deals keep assets under the same sponsor but raise questions about credit quality and fund governance. For executives and investors, the surge signals that liquidity engineering is here to stay, not just a stopgap response to a long-running deal drought. [FT]

It is currently estimated that 14% of all sponsor-backed exits go through continuation vehicles. Limited partners forecast that figure to increase further; they expect 29% of deals reaching the end of their term to pass through continuation vehicles five years from now.

On McKinsey.com. PE-backed exits rebounded in 2025, and so did the value of these deals, which rose more than 40% year over year. Yet liquidity remains subdued, say McKinsey’s Alexander Edlich, Chris Llewellyn, Christopher Croke, Rahel Schneider, and Warren Teichner in the Global Private Markets Report 2026. They note that trends to increase liquidity that first appeared niche, including the rise of continuation deals, now appear to be enduring—and even growing—elements of private equity. As the landscape becomes more technical and demanding, see what PE stakeholders can do to differentiate, specialize, and operate with discipline in a maturing industry.

Navigate new terrain

In the news. Chief information officers (CIOs) are under increasing pressure to deliver both technical and business expertise, InformationWeek reports. As enterprises move from AI experimentation to execution, the CIO role is becoming highly strategic. Many CIOs are now responsible for business outcomes, not just systems delivery: They’re leading cross-enterprise initiatives alongside CEOs to ensure that technology transformations scale AI quickly and effectively. Moving fast on AI without losing control over data, costs, or compliance—while also ensuring that their workforce can use AI in value-creating ways—is hard. But CIOs who embrace this new role can create real competitive advantage. [InformationWeek]

On McKinsey.com. CIOs at top-performing companies are becoming strategy architects, according to McKinsey’s Global Tech Agenda 2026. André Reil-Jerenz, Giulio Romanelli, Rahil Jogani, and Tanguy Catlin unveil key findings from a global survey of tech and business leaders. Two-thirds of high-performing companies have CIOs deeply involved in strategy. Forward-thinking tech leaders are also investing heavily in AI—weaving it into operating models to create real ROI. Yet one-third of respondents say their companies still struggle with AI capability gaps, suggesting the need for continued employee upskilling. CIOs can accelerate growth by adopting four strategic imperatives, including cocreating tech strategies with business leaders.

Adopt a new CIO playbook

The new rules of competitiveness

In the news. One European automaker is investing $3.5 billion to rebuild its competitive edge in China. The Associated Press reports that this strategic move involves shifting decision authority, R&D, and product design to local partners and teams, who are closer to local customers. It also reflects how quickly a company’s advantage can evaporate in highly competitive markets. In China, domestic automakers launch new electric vehicles every 12 to 18 months, beating global incumbents by years. Moving faster is a necessity for foreign automakers to be competitive in both local and global markets, one executive notes. [AP]

On McKinsey.com. Companies may think their competitive advantage is rock solid. But that foundation is more like quicksand, according to McKinsey’s Andy West, Laura LaBerge, and Matt Banholzer. They note that, among market leaders, the “shuffle rate”—how quickly companies move into and out of pole position—has accelerated, signaling faster erosion of incumbents’ competitiveness. Top-performing companies are 2.5 times more likely than others to know what differentiates them from peers and to closely track their relative position. Others can follow suit by following five rules, such as tailoring their advantage to each market and not overinvesting in capabilities that customers don’t value.

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