What a difference a year had made. Speakers
at last year’s conference had noted
the beginnings of financial dislocation
and a rapid increase in risk aversion.
However, no one could have foreseen
the subsequent near collapse of the financial system, the breathless succession of dramatic market events, government
interventions on behalf of so many large
institutions, and the wide range of special
government programs. Despite these
events, private equity funds are still robust
and are playing a new role as part of the
recapitalization of the banking industry.