[jane_is_here]

You almost always want to sell the portfolio firm after three to five years. It is therefore in the PE firm's interests to have the firm healthy and thriving. The idea is very definitely not to cripple or harm the portfolio firm.

For an excellent example of best practice look at what Blackstone have done with the Hilton Group, Wolfskin, Merlin Entertainments ( owner of Legoland, Madame Tussaud's, London Eye ), the Bujagali Hydropower Project in Uganda or the Moser Baer Projects in India.

[dunkelheit]

Well it seems that in this case PE firms have managed to cripple the firm and then sell it. Strangely the details of that sale are not discussed in the article.