Trending Content - Private Equity Forum
Career Resources
WSO Free Modeling Series - Now Open Through
August 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Hard to give specifics, but LMM PE seems to be in for it - lots of PortCo's bought in 2021/2022 at Peak EBITDA showing declining trends and high rates are really starting to bite. Doesn't take much of a decline in EBITDA (10-20%) for the cracks to start forming. The longer rates stay here, the more weakness you're going to see.
I'm very bearish on PE in general right now, especially those focused on certain segments of industrial, certain segments of HC, tech that was bought at 100x ARR, etc. That said, without having insight into their entire portfolio but rather only a PortCo or two, hard to really say for sure - one homerun can make up for more than 1-2 duds.
Naturally, PC will also get hit. While they're higher in the cap stack than the equity, losing their ass on 1-2 PortCo's is very hard to recovery from bc they don't have the upside equity has on other deals within the portfolio.
It's coming... just taking longer to play out than most have expected.
Typical lazy LevFin take
What makes you bearish on industrial? Just think that valuations over last few years have been to high and the multiples come back to reality?
Healthcare has more tailwinds now in HCIT / pharma services. I will say PE firms who've invested heavily in HC Services rollups are struggling a lot lately. Had an interview process at a PortCo that falls under that umbrella a few month ago and it looked like they were in really bad shape. Stopped being acquisitive and were desperately trying to improve their current cost / operation structure. On the other hand, a contact of mine works at a HCIT PortCo and is recently working on integrating a tuck-in acquisition.
Maiores aspernatur rerum voluptatem molestiae error omnis. Ea exercitationem fugit quas optio quo. Voluptate voluptates fugiat nemo. Et sit quaerat quaerat distinctio perspiciatis dolorem.
Natus ducimus possimus sed ut. Commodi quo fugit optio quia. Nisi blanditiis id culpa voluptas.
Occaecati blanditiis quisquam quam molestiae. Exercitationem iusto facere voluptas.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...