While public market investors in technology and SaaS companies are still licking their wounds and reeling from losses, private equity giant Thoma Bravo with more than $114 billion in AUM has thrown caution to the wind and embarked on an acquisition spree, picking up companies like Ping Identity, an enterprise identity management company in a deal worth $2.8 billion.

It’s a bold strategy, and picking up fallen angels that are struggling in the public markets and bringing technical and operational expertise to the table could prove fruitful, but at the same time private equity is in a precarious position.

The PE industry was a huge beneficiary of rising valuation multiples and lower financing rates for leveraged buyouts over the last decade. With interest rates up and multiples collapsing, both those tailwinds are gone.

Here’s a few of the ways this could play out: