With the impending regulation hanging over the private equity industry, it's hard to tell whether the industry will expand or contract. By requiring firms to register with SEC, or similar measures intended to increase transparency, it's possible that investors may be drawn to the asset class because it would have more accountability to limited partners. On the other hand, greater regulation could limit private equity firms from generating the same kind of returns that investors have enjoyed previously. The following video examines these issues and the current state of private equity.