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A diamond is forever even if it spends years in a drawer only to periodically emerge for moments of brilliance.  Business cycles continue but the existence/relevance of private equity should not be doubted.  This downturn will pass and private equity will come roaring back with the largest war chest it has ever possessed and more brazen tactics.  This will pass and it seems like many institutional investors agree as they continue to pour money into all the new mega-funds the PE firms are closing each passing day.  Alison Mass, co-head of Goldman Sachs’ financial sponsors group, speaking at the 20th Annual Buyouts East conference last week in New York, had this to say, "Private equity is not a new business."  She went on to say that, "It consists of firms that have been in business for decades. But it’s a cyclical business. (They) have seen these cycles before."  Indeed, some of the best returns the industry has recorded came from down years, she said.