Questions are being asked about one of the giants of the private equity business, reports Reuters. Analysts are wondering what has happened with Texas Pacific’s latest fund setting its target at only $1 billion.

TP chief David Bonderman has been on the frontline calling for mega-funds to finance mega-deals but now the fund is going mid-cap. What gives? PE has been flush with pension fund and other investment money and running a small operation does not seem like the best way to keep those returns at 20 to 30 percent, says one carping but anonymous investor.

The firm’s strategy is that there are plenty of very very profitable opportunities in the small companies. They often need finance and strategic assistance which can turn a good company to gold. That was the way PE first started coining it and this is a return to its roots after huge feasts like the Harrah’s buyout. And it may mean that last year’s talk of $100 billion funds was nothing but fantasy.