As well as the threat of a double-dip recession, regulation has leapt to the top of many firms’ lists of the biggest threats to their industry, despite the low systemic risks posed by private equity compared with oversized banks and insurers.

Governments in the US and Europe are working on legislation that looks set to have broad repercussions for the industry. The European Union's Alternative Investment Fund Managers directive threatens to force private equity-owned companies to disclose additional information, according to sources.