Kraft Heinz cut expenses too deeply under private equity management, its new CEO says

[WSHazel]

36. By this logic, no one should provide capital to troubled companies

If the private equity firms are gonna be held responsible if a company goes up bankrupt, then the smart move for a private equity firm is to never give capital to companies that might get into trouble. This is how the world used to be, and generally when a company got in trouble, it would just go out of business or would be purchased dirt cheap, wiping out the original investors and resulting in most employees getting fired. By taking on some of these challenging situations, private equity firms actually give these companies a second chance, but there will be failures. It is worth noting that the private equity firm typically loses all its investment if the company goes bankrupt.