After posting better-than-expected earnings, Blackstone Group chief operating officer Tony James said that "the availability of debt for…new transactions is back to normal, perhaps even above normal in terms of leverage levels."

Is this a return to the environment of a few years ago, when cheap money and easy credit terms allowed private equity firms to dominate dealmaking, making headlines with one massive buyout after another? That's doubtful. While funding is becoming more readily available as the economy rebounds, other factors will make some deals cost prohibitive.

"Yes [funds are] available, but it's a lot more expensive," Marc Oken, managing partner of Falfurrias Capital Partners, in Charlotte, North Carolina, said, referencing higher transaction fees and closing costs associated with deals.

Yet there are fresh signs of renewed life in the private equity sector, which all but came to a standstill during the depths of the credit crisis. Two private equity firms were active this week, making headlines with deals in the food and restaurant industries.

Today, Thomas H. Lee Partners of Boston announced a deal to purchase Carl's Jr. and Hardee's parent CKE Restaurants Inc. for $928 million, which includes the assumption of $309 million in debt.

This follows on the heels of a move late Thursday that saw Lion Capital LLP turn a nice profit on the sale of potato-chip maker Kettle Foods, sold to Diamond Foods Inc. for $615 million, almost double what Lion paid in 2006.

The CKE deal is likely indicative of potential acquisitions that could come down the pike.

"In general, the values in the food business are down. These guys are buying at an opportune time. Invest in the company when the market's coming back," Oken said. "If you have the right attitude, you can see it as a good opportunity."

Another reason the CKE deal was able to come through is because CKE owns a lot of their restaurants, so THL will be able to take advantage of asset-based lending, which, according to Oken, is more readily available.

Oken said that the restaurant sector could be an area that will see more deals going forward. He said that the financial-services sector could be another area, saying that both areas were similarly hit by the economy.

"When you're assembling a fund, you want to be in a segment that people want to be a part of."

Regardless of the sector, don't expect to see gigantic blockbuster deals, such as Blackstone's purchases of Equity Office Properties and Hilton Hotels during the "buyout boom" anytime soon.

James said that midsize deals will be more prevalent for private equity firms going forward.

Oken agreed, although he said that "midsize" is relative. Oken said that less leverage and more equity will be a theme of any private equity deal going forward.

"So many of the big deals have not gone well because of all of the leverage," he said.

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