Private equity firms using companies debts to enrich themselves.

A report published by the private equity industry showed us that companies paid dividends and bonuses with debts, despite of the warnings of the rating agencies. A group of 47 private equity- owned firms had a combined debt of £13bn before they were taken over and have now a combined debt of £71bn. That's one of the negative effects private equity firms have. Most of the time it's necessarily, to become more profitable or to grow but not in such an explosive way. The problems for these firms are on a longer term (when private equity firms redraw their investment) and could form a treat for their further existing. An enormous debt, that has to be paid off and a lower quality debt which is more expensive for these companies.
So private equity firms have to implement more the rule of corporate governance to secure the further existing of these companies.

http://www.guardian.co.uk/business/2009/dec/10/private-equity-profiting-from-debt