No one should be all that surprised that private equity returns slowed a bit toward the end of the year. In the third quarter, the slowdown was spread across all classes, buyout, venture capital, mezzanine and distressed debt buyouts, notes Financial News Online. It cited data from the State Street Private Equity Index, which calculates the internal rate of return. Venture capital had the biggest decline, dropping from 13.23 percent to 12.42 percent. Buyout returns, mezzanine, and distressed buyout returns were more modest. This is a blip in the big picture. But you have to wonder if a trend is in the making. A slower economy could really hurt. As could a narrower range of exit opportunities. One bright spot: due to the dollar, returns on overseas deals rose a bit.  

For more:
- here's the Financial News Online article