Private equity funds continue to raise funds at a surprisingly robust clip. Despite the current turmoil, the historic returns have been great, and pensions seem to be as hungry as ever to invest, though some may be nervous. CalPERS deal with Apollo is a decent example. That said, with financing conditions tight, where will the deal inventory come from? Investment Dealers' Digest suggests that more of the top firms will look at smaller deals. It makes a lot of sense. Mid-market buyout firms have fared decently through all of this. In general, they seem more willing to hold debt than syndicate it out. I am sure they are not thrilled at the prospect of competing with the likes of the Blackstone Group.  

For more:
- here's the Investment Dealers' Digest  article