What PE loves to do (and where I think a lot of the vibe comes from) is buying companies from owners who care about the craft and turning them into companies that care about nothing but money.

Let's say you make an app for first responders. Being a former first responder, you know exactly what your users need and what the workflows should be like. Your app becomes a brand name in the community. You charge enough to survive (if that), because your app is a labour of love more than anything else.

Eventually, family and other responsibilities get in the way, and you just no longer have the time or motivation to maintain the app any more. You sell to "we so swear we are not private equity" Applause.

As soon as you do that, the app gets taken over by financiers and developers who are experts at "revenue optimization", with little domain knowledge about what first responders need. They calculate (probably correctly) that they can milk their customers for a lot more if they move to a subscription plan, gate some features behind expensive premium packages, stuff the app full of upsell pop-ups and fill it with analytics SDKs that tell them which features are worth spending development time on, and which can safely be removed.

For me, private equity gets a bad rep because they've bought up all of the local mom and pop shops for just about any service I need thats face to face. All of the plumbers, electricians, general contractors, vets, grocery chains, coffee shops, and other shit were bought and had every ounce of revenue squeezed out of them. The result? All of the things I need locally cost 3-5x they did and the service is far worse.

And as a quick edit: none of these examples I have were of failing businesses. Each of the owners had their reasons, but none was due to it being necessary for survival. PE on hackernews tends to focus on software/bigger purchases, but so much of the damage in my opinion is on the local and smaller scale.