Bankers are expecting buyout shops to tap the public markets with fervor in 2011, as they capitalize on a buoyant equity market in their march to produce distributions to investors after a stagnant 2008 and 2009. How well they succeed could have a lot to say about the strength of the fundraising market this year.

The Institutional Limited Partners Association, which has grown to more than 240 members at a time of growing limited partner power, this month called for additional protections for LPs faced with a situation where a general partner takes profits early in the life of a fund that eventually have to be returned to investors.

Altamont Capital Partners, the firm started by former Golden Gate Capital executive Jesse Rogers, has closed its debut fund with $500 million in commitments.

The S&L; crisis of the late 1980s and early 1990s ruined many investors while making billionaires of a savvy few. History may soon repeat itself. As the most severe crisis since the Great Depression recedes, private equity firms are once more investing in financial institutions. Although the upside potential of bank buyouts is immense, associated pitfalls could ruin the unwary.