There are many ways to tell the story of the turnaround in America’s capital markets since last spring. The focus has been on public markets, notably the wondrous surge in share prices. Yet the change in fortunes of private equity (pe) is perhaps more remarkable. A year ago Blackstone, a pe giant, reported a first-quarter loss of more than $1bn. A reckoning seemed overdue. Widespread defaults on overborrowed pe-owned businesses were expected. A year on, Blackstone has reported record profits of $1.75bn. So much for comeuppance.