[basseq]

A couple different ways to answer that question.

For portcos, you'll definitely see the focus on costs. That means restructuring/layoffs, contraction from non-key markets, and reduced growth initiatives.

PE is going to be loathe to sell at a loss, though you'll see some horse-trading between some firms. So that would be a last resort, though we are already seeing some write-downs, like Vista/PluralSight last month[1].

More broadly, you'll see lower valuations and tightening in the credit markets that may affect macroeconomic slowdowns.

Most of this isn't exclusive to PE: interest rates and other drives are affecting non-PE similarly in the form of increased borrowing costs, tighter credit conditions, and general economic uncertainty. The contrarian view may be that PE portcos are better able to navigate those waters given the focus on business fundamentals and operating maturity.

[1] https://www.axios.com/2024/05/31/vista-equity-pluralsight