We've noted that there's a rising sense of optimism in the private equity industry. At Blackstone, at least eight initial public offerings of portfolio companies are planned in coming months. It has also just launched a fund-management firm in China. But we're a long way from the golden days of financial sponsor deal making. 

Schwarzman tells Business Week: "You know, you can do transactions in the $3 billion-to-$5 billion range. The amount of debt you can borrow is probably in the five-times-cash-flow range. That's down from as high as 11 at the peak. And the equity in the capital structure, which got as low as 10 percent at the top of the cycle, could be in the 30-to-45 percent range now. You actually have to put in pretty good-size equity checks to do reasonable deals."

One issue that's percolating out there is the willingness of institutions to keep doubling down. Some are rethinking the asset class right now, and I wouldn't be surprised if we hear about more investor-friendly steps being taken by top funds.

For more:
- here's the Business Week article

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