The deal slowdown is coming at tough time for private equity firms. Despite the turmoil at the end of the year, 2007 was a banner year for fund raising. Last year, 415 U.S. funds raised $302 billion. That's about 20 percent higher than the 2006 level, according to Financial News Online. Leveraged buyout funds led the way, of course. The obvious point to be made here is that all this cash will have to chase fewer deals, forcing down returns, making for a bitter year. We've heard all that before. While it is true, there are some opportunities, notably distressed securities funds. More than 20 of these funds raised $45 billion last year. That's three times the amount in 2006. That's a relative pittance, of course, but it does represent a possible way to temper the downturn. 

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