PE firms are just a pure expression of capitalism. That’s for another discussion.
Many PE firms buy founder led companies. Most founders want to make money - true - but it started with an expertise or a passion for the company’s mission they started and not just profit. That can often be lost in an acquisition by anyone, not just a PE firm.
Add the structure used and it can compound the issues. Many times PE firms use significant debt in their acquisitions. That debt is often private credit (either primary or mez debt behind a more traditional lender). private credit can have flexible terms early but higher interest rates and short term maturities which can require a refi or a sale.
Add the pressure of realizing good annualized returns and there is pressure to increase EBITDA to elevate out of a 5x multiple and get to an 8x multiple or even further up the chain. So while the people aren’t necessarily bad people, the deal structure itself encourages a 3-5-7 year strategy and a go-go-go mentality at the operator level which can sacrifice the intangibles that made a company a great company to begin with. What’s left may still be a solid business - maybe even better in some ways - but it will be different with that different ownership group.