The multi-billion dollar deals get all the ink. But 90 percent of all private equity deals come in at less than $1 billion. In 2006, there were 385 under-a-billion deals, with the average being $200 million. That has supported a thriving industry of smaller-stakes private equity firms. Most of whom you have never heard of. According to Thomson Financial, there are now 1,700 private equity firms domestically, up from 900 seven years ago. This isn't quite hedge fund-like proliferation but it is eye-catching. The big investment banks leave the market for smaller deals to specialists such as Houlihan Lokey, Robert W. Baird, and ML Capital (owned by Merrill Lynch). Many of these deals involve private companies, but they often have well-known brands, such as Old Country Buffet and Eight O'Clock Coffee. The returns are lower, but it seems like a good niche.

For more:
- here's the Fortune article