One consequence of the credit crisis shutting off the debt financing LBOs used to make acquisitions is that private-equity executives increasingly find themselves feuding over power, money, and strategy. Bloomberg provides details of the ouster of Dominique Megret, former CEO of PAI Partners, France's biggest private-equity firm.

Lionel Zinsou and others partners delivered an ultimatum to Megret: they wanted more say in running the firm or they would resign from the investment committee.

Leveraged buyout guru Henry Kravis, cofounder of the legendary private equity firm Kohlberg Kravis Roberts, tells Forbes that he believes private equity will come back from the hit it has taken from the financial crisis.

"It's not dead at all, but it will take different forms," he said.

Kravis compares the current economic environment to 1979, when, the U.S. economy was struggling, inflation was at 13%, unemployment at 11%, and zero financing was available. But then, of course, followed the explosion of private equity in the 1980s and 1990s.

Founded in 1985, Permira is a massive private equity firm focused primarily on Europe. (The firm's name is Latin for "very surprising, very different.") The firm manages about 22 billion euros in assets.

However, as private equity gets more powerful, it is creating a lot of concern in European politics.

Well, the chief of Permira, Damon Buffini, granted an interview with the BBC to defend his business. Of course he thinks the labor unions and other critics of private equity are wrong. That is, private equity does not mean fewer jobs; instead, it helps improve the overall economy, which should ultimately lead to more jobs.

OK, this may satisfy economists. But this type of argument never satisfies unions. After all, a key part of Permira's strategy is to streamline operations, right? And that means cutting jobs.

True, these are jobs that probably should not have existed anyway. But, again, don't expect unions to agree with this either.

So, while Europe probably needs tough action to restructure its economy -- and private equity can drive this process -- it is probably going to take a long time.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.