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There are way too many variables at play to make a broad assumption about PE and Blackstone specifically.
I’ve been doing CDDs for ~3 years. Can’t think of a single one where G&A reductions were outlined as a major value driver in their investment hypothesis. Frankly, it’s not a difficult lever to pull (so likely not much opportunity left by the time a new buyer acquires it). Conversely, additional investments in headcount are often factored in to support the main value drivers, which are usually growth oriented.
They do run a tight ship though. I would expect stinginess in functions/capabilities that aren’t core (I.e., back office) or that aren’t core to their growth hypothesis.
Couple exceptions:
-If the company isn’t doing well, expect some belt-tightening, but this isn’t unique to PE.
-companies doing a lot of rollups are likely to get rid of a lot of redundancies (particularly back office, but could be any function depending on the strategy). It’s unlikely that they’d be hiring in those areas though if they’re in this position.
I’d be asking a few questions:
What’s the overall growth plan?
What are the key drivers of growth (and does your function support that)
How has the investment performed since they bought it?
What have bonuses been like in recent years (I.e., have they been hitting their targets)?
How far away from transacting are they (you could potentially see some streamlining in advance as a short-term measure to improve EBITDA)
I would not generalize about PE or even Blackstone on this topic. Differences sit at the portco level.
Good luck!