The new report The People Premium: Human Capital as a Driver of Value Creation in Private Markets, by World Economic Forum and ERM, investigates how private markets are evolving their assessment of human capital as an enabler for value creation during the investment life cycle.  

The report draws on interviews, survey responses and multilateral discussions with more than 20 leading investment firms representing nearly $4 trillion in disclosed assets across North America, Europe, Asia-Pacific and the Middle East.  

Each section explores one dimension of value creation through human capital, illustrates it using examples from leading organizations, and concludes with practical guidance that investors, boards and portfolio company leaders can apply within their own operating models.  

Key findings of the report:  

  • Human capital – beyond the CEO – is becoming an underwriting discipline. Pre-deal human capital diligence has evolved beyond confirmation of workforce risks and minimum stewardship standards. More mature investors increasingly pursue deeper assessments of leadership quality, organizational capability beyond the C-suite and succession as predictors of investment performance.  
  • Human capital initiatives are expanding beyond individual portfolio companies and into formalized, platform-wide programs Leading firms build repeatable platform capabilities that strengthen talent at portfolio companies and directly support the execution of human capital value-creation strategies.. 
  • Measurement and attribution remain the industry’s next challenge. Investors consistently reinforce that human capital contributes materially to enterprise value; however, few can currently isolate or quantify its financial impact at exit. The next phase will be defined by establishing credible methodologies that connect these operational metrics to EBITDA1 growth and investment returns.  
  • Artificial intelligence is reshaping human capital strategy. Investors are using AI to enhance diligence, workforce planning and productivity while reassessing the capabilities, career routes and leadership models required in AI-enabled organizations. The firms furthest along position AI as an enabler of better decisions rather than a replacement for them.  
  • Context is a competitive advantage. Human capital value creation playbooks do not transfer seamlessly across geographies, ownership structures or investment strategies. Demographics, labor markets, industrial policy and cultural expectations shape both the opportunities available to investors and the interventions most likely to succeed.  

The question is no longer whether an engaged and capable workforce creates value, but how systematically investors can identify, develop, measure and scale that value across the portfolio. This report provides a roadmap for advancing along this maturity journey.