ACG Atlanta Peers into Crystal Ball: Panel at the Capital Connection predicts the upcoming year will provide a more stable, albeit careful, environment for middle-market PE investments.(American Capital Group)

It is no secret that the financial and investment worlds faced a roller-coaster-like year in 2007 - although most professionals would not liken the past few months to a trip to Disney World. Investment dollars were readily available in the 18 months leading up to the last quarter of 2007, with the strong liquidity bringing unparalleled capacity, at times reaching upwards of $10 billion a month. That has changed significantly so far in 2008, and the next 12 months will likely not carry such deep pockets.

A panel convened at the 2008 ACG Atlanta Capital Connection on February 7, 2008, to lend perspective and some guesses as to what 2008 could hold for the financing markets. Representatives from CapitalSource, Parthenon Capital, PNC Business Credit, Regions Business Capital, Suntrust Robinson Humphrey and Wachovia provided their thoughts on what the "tumultuous" end to 2007 meant for the private equity world and what can be expected for the remainder of 2008.

To be sure, problem areas do exist. As a caveat, though, the panelists consistently …