Does the “Fit In or F* Off” Model Still Work in Private Equity?

A Brutal but Outdated Approach?

Private equity (PE) has long been known for its high-pressure, results-driven culture. In many firms, the "Fit In or F* Off" (FIFO) model has been an unspoken rule - new leadership, strict performance expectations, and little patience for those who can’t adapt at the pace that’s needed.

But as PE firms face increasing competition, cultural challenges, and talent retention issues, does this approach still drive success? Or is it an outdated relic that threatens long-term value creation?

The Traditional FIFO Model in Private Equity

For years, FIFO has been the default playbook:

• Post-acquisition leadership shakeups - New CEOs and management teams are often brought in to align with PE goals.

• Hard resets on company culture - Portfolio companies are expected to quickly adopt a high-performance, efficiency-driven mindset.

• Zero tolerance for resistance - Employees who struggle with the transition are often pushed out.

In theory, this makes sense. PE firms invest to win and get the return on their investment, which requires fast, high-impact change. However, this aggressive approach has some flaws.

Where FIFO Fails: The Modern Private Equity Reality

1. Culture Is Now a Value Driver, Not an Afterthought

Recent research, including the AlixPartners & Vardis Private Equity Survey, has shown that culture plays a critical role in investment success. Yet, only 13% of PE firms formally assess culture, despite 81% of portfolio company executives saying it’s key to strategy execution.

FIFO ignores the cultural foundation that makes a company successful. Forcing rapid cultural change without alignment leads to disengagement, talent loss, and operational instability.

2. Talent Retention is More Critical Than Ever

The war for talent is real. PE-backed companies often struggle to retain top performers after an acquisition.

• 75% of PE respondents in the AlixPartners survey reported experiencing a portfolio company failure due to poor CEO fit.

• 50% of portfolio companies say their culture is misaligned with their business strategy.

• High attrition rates after acquisitions delay or dilute value creation.

A FIFO approach often pushes out key employees who hold institutional or “tribal” knowledge, making integration harder and slowing down operational improvements.

3. Leadership Turnover Can Hurt More Than Help

While replacing leadership is sometimes necessary, it should be approached with caution.

• 68% of PE firms have hired CEOs to change culture, with an 82% success rate.

• However, promoting from within often leads to smoother transitions because existing leaders already understand the company.

A more strategic approach to leadership selection - balancing external expertise with internal continuity - you could argue can lead to better outcomes.

What Works Better Than FIFO?

Instead of a “Fit In or F*** Off” mentality, leading PE firms are adopting more of a “Fit Together and Thrive” model. What this means is businesses should consider doing the following:

1. Conduct a Culture Assessment Before Investing

Top firms are conducting cultural due diligence alongside financial and operational analysis.

This helps them:

• Understand cultural strengths and weaknesses before making leadership changes.

• Identify which parts of the culture drive performance and which need to evolve.

2. Make Smarter Leadership Transitions

• Evaluate internal talent before defaulting to an external CEO hire.

• If hiring externally, provide clear integration plans to prevent culture clashes.

• Avoid “slash and burn” leadership changes that disrupt momentum.

3. Prioritise Communication and Change Management

• Transparent communication about post-acquisition expectations.

• Stakeholder alignment workshops to bridge cultural gaps.

• Gradual transitions instead of abrupt culture overhauls.

The Bottom Line? FIFO is Dead, Adaptability is Key

The old-school "Fit In or F* Off"** model is becoming a liability. PE firms that prioritize cultural intelligence, strategic leadership transitions, and employee retention will create stronger, more resilient portfolio companies - and ultimately drive higher returns.

Private equity is still about results. But in today’s market, achieving them requires more than just forcing people to “fit in.”