They operate a bit later on a different risk profile. Their MO is more like (1) take something that is basically working but needs capital (2) work out a deal

They operate a bit later on a different risk profile. Their MO is more like (1) take something that is basically working but needs capital (2) work out a deal that gives them a enough leverage (e.g. board input/control, debt financing pressure, etc.) then (3) squeeze it for a quickish exit for the PE and (4) move on to the next. Doesn't always work, of course, but that's the playbook. Of course the flip side of that is sometimes, particularly with a young company, they just don't know what the hell they are doing. A PE company could potentially fix some of that, potentially at a reasonable cost. One way to perhaps think of it is this: VC types are in the business of betting on people, and don't necessarily trust the product. PE types are in the business of betting on products, and don't necessarily trust the people.