First, people keep saying "private equity" - most investment in the US is private equity (eg every time an angel invests into a company, it's a private equity investment).

I will assume what is being referred to here, is LBO or more aggressive acquisition type firms like Bain.

The parent is right however, if Bain comes knocking on your private business, it's up to you as to whether you take their money. They do not use force to make you take their money or terms. I don't think the parent is making an argument in favor of these companies being saints, rather, that they function on a voluntary basis.