Leadership development is key for private equity returns in a high debt environment, especially while PE firms are being forced to spend more money to keep their portfolio companies going concerns as rising interest rates disrupt the buyout industry’s well-worn, debt-heavy playbook. One way to optimize operations is to invest in the leadership team. There are a few reasons for this. First, strong leadership is essential for any company to succeed, but it is especially important for PE portfolio companies. This is because PE firms typically have ambitious growth plans for their portfolio companies, and they need leaders who can execute on these plans.