Survey: 88% of PE Firms Have Cut Portfolio Company Headcount
Another day, another survey. This one comes from RSM McGladery, and focuses on PE-backed portfolio company management. The most notable -- albeit unsurprising -- response was that 88% of those surveyed have implemented "headcount reductions" at portfolio companies, while another 10% are considering such moves. Moreover, 75% of respondants have used salary freezes. Also worth noting that PE pros are concerned about how layoffs and other cost-cutting measures will impact the private equity industry's reputation. The survey included replies from nearly 100 senior buyout, venture and mezzanine professionals. They said that their greatest portfolio company concerns revolve around the overall economic outlook, while more than half are worried about portfolio company loan defaults (a result that should be amplfied, given that the VC respondants are unlikely to have used debt in the first place). Read the survey after the jump, or download it here:
