Traditionally, yes. But the PE guys now have big enough funds that they need to broaden their thinking about what kinds of companies might be appropriate for th

Traditionally, yes. But the PE guys now have big enough funds that they need to broaden their thinking about what kinds of companies might be appropriate for their own special kind of love. Also, the way PE finances are set up, the general partners collect big fees when deals are done, regardless of the outcome. The limited partners bear most of the risk of deals that don't work out. Since general partners call the shots, a 100% chance of getting deal fees plus a 20% chance of having the deal work out creates a deal with 120% upside. i'm oversimplifying slightly, but the key point is: Such deals get done.