Fairly one-sided article (and book). Don't get me wrong - there are many negatives about private equity. There are a large number of big corporations that are under severe financial stress right now (Harrah's, Clear Channel, etc.) because the debt they were saddled with by PE. But painting the whole industry with such a broad stroke isn't right.

Private equity offers the opportunity for management to make unpopular management moves and away from the quarter-by-quarter mentality of Wall Street. This is often exploited by firms. But some add real value:

How One Private Equity Firm Beat the Odds http://www.businessweek.com/investor/content/nov2009/pi20091...

How Texas Pacific Cleaned Up at J. Crew:The private equity firm reaped many times its investment by giving the preppy retailer the freedom that few public companies enjoy http://www.businessweek.com/bwdaily/dnflash/content/feb2007/...