Publicly traded investment firms generally performed well in the third quarter, suggesting deal activity and fundraising should continue to improve in the coming months across the market.

The New Mexico State Investment Council’s private equity investment advisory committee voted recently to approve a private equity allocation target for 2011 of at most $275 million at most, to be divided among six managers. However, the limited partner is still hesitant about the asset class and is in no hurry to make pledges, said a spokesperson.

These are busy days for the Greenwich, Conn., turnaround firm Littlejohn & Co.

Current economic difficulties accentuate the importance of conducting effective and thorough due diligence in any merger or acquisition transaction. Items requiring investigation include: