[gostsamo]

I'm not an expert so below is only my personal take on the matter.

Being private allows for less accountability to people who might not be acquainted with the business, want short-term profits, or do not share the owners long-term vision for the company. All of these allow for more freedom in movements and limit the damages to those who understand the risks. On the other side, the company has more limited pool of liquidity sources and each of the investors might have stronger voice in shareholder meetings.

As a result, the public investor might not share the profits of the business, but it might not incur losses because of it as well. Therefore, private equity is just another business organization model which has its pros and cons.