private equity firms have joined forces to create a lobby group.

The press release says the new Private Equity Council will educate policy-makers about the groups.

Yeah right. That's code for heading off regulation. US regulators and the Financial Services Authority in Britain are now looking carefully at the way big firms are carving up the market, according to news reports. They are also looking at allegations of collusion, insider trading and fraud.

In Australia, the corporate regulator is also monitoring the situation, Australian Securities and Investments Commission deputy chairman Jeremy Cooper told me in an interview.

But if the regulators are closing in, Asia is emerging as the next big frontier for private equity.

Meanwhile, the new private equity club in the US will counter moves to bring the sector under control.