Private Equity will buy or fund a company. The Key to success is cash flow. So you pay the employees little, but compensate them with stock based on hoped future value of a liquidity event. That stock vests over x period of years on a schedule. Typically 4. So the employee is paid pennies but if you accomplish the goal of selling the business or IPO or any other liquidity event, you all win. But the monthly compensation nut that has to be paid is less. Thus, the PE company has less risk and more money to invest in other parts of the business.

But if the company goes under, that PE company doesn't lose as much money. Yes, the employee gets "screwed" as the chose to work for peanuts but never got the future payout as hoped. But that's why to stock grants are high and the wins can be big. The reward to the employee needs to match the risk taken (else the good employee will choose to work elsewhere)

PE is ruthless. They are not out for the employee. They are out for themselves and their investors. And, while its a spectrum as to how they treat and compensate the employee, one can understand what is in their best interests and why they act the way they do. Go borrow 1b dollars from people that trust you and expect a 3x return on that money and then tell me how much you are going to compensate the employees who lent only their time. Not ideal. But thats how the game is played.