The Wall Street Journal in February ran a story about private equity under the headline 'Buyout shops reclaim some swagger,' describing a 'solid 2009' and the view of the big firms that 'a more stable and discerning market' lay ahead.

After all, private equity is a proven commodity, having been with us at least since the mid-1960s. For much of that time it has been a hot area of activity. It has grown enormously, both in size and scope. It attracted more than a trillion dollars of new money in the mid-2000s. It has survived bull and bear markets and made billionaires of many of its principals. It has gone public.