Private Equity targeting 401(k)s

Interesting Bloomberg article talking about Private Equity getting into 401(k) plans.

Six Democratic Senators, including Bernie Sanders and Elizabeth Warren, sent a letter to Labor Secretary Eugene Scalia looking for answers on the "misguided labor department decision supporting private equity."

Here's part of the letter: "Private equity has a long-standing track record of profiting at the expense of workers. When investors purchase a company, they actually have little incentive to ensure the company improves its performance. The managers of the fund profit from the management fees they impose, and they are free to use the companies they acquire to take out loans that are later paid as dividends. They can sell off the assets of the companies they acquire and assume little risk for the bets they make. These perverse incentives, investor-friendly rules, and gaps in private equity transparency and governance ultimately put workers at risk of losing their pay, their benefits, their jobs, and their livelihoods."

What are your thoughts on this?