The devastation in the private equity market caused by the credit crisis has started to ease in the third quarter of 2009. The as-yet weak recovery in private equity dealmaking follows nine months of limited activity after the collapse of Lehman Brothers plunged the debt markets into turmoil.

While many still fear this may be nothing more than a brief uplift in the markets after the financial crisis almost halted deals entirely, changing business models in private equity, the quarter showed the first positive signs of deal activity increasing.