This time last year, the private equity industry was enjoying what Henry Kravis called a golden period for the asset class. Last year’s Private Equity News poll was sub-titled “at the summit”. As was then noted, the trouble with such a lofty position is that, from the top, the only way is down.

And so it has proved. The credit crunch, which started in the US mortgage market last summer before spreading into other parts of the financial system, has vastly reduced the amount of liquidity available. To private equity firms, whose spectacular returns in the past few years have been closely tied to ever-increasing amounts of leverage, the reduction in the availability of credit has been akin to having their air supply cut off.