June 24, 2007 (LPAC)--The private equity business is peaking, and the level of activity will likely decline in coming months, according to Joseph L. Rice, III, the chairman of buyout firm Clayton, Dubilier & Rice. Interviewed by Bloomberg in Singapore at the World Economic Forum meeting, Rice said that "the level of activity, the character of transactions; all of these appear to be at a cyclical high. We are pretty close to the peak." Private equity firms raised $210 billion in 2006, a 57% increase over 2005, and announced $702 billion in takeovers, both records. This activity is a result of the extraordinary levels of liquidity which have been pumped into the financial system in recent years to facilitate widespread debt workouts and restructuring, but with the reductions in liquidity now underway, the funding for such deals will also decline. Clayton, Dubilier & Rice is well-connected, with significant ties to the Morgan interests and the weapons industry, including partner Roberto Quarta's seat on the board of BAE Systems.