Bloomberg reports that Gome Electrical Appliances Holdings Ltd. may sell up to 20% of the company to Bain Capital. The asking price is said to be in the neighborhood of $500 million. KKR & Co. and Warburg Pincus are also said to be interested in the stake in Gome.

With more than 800 stores in 160 cities, Gome is China's second-largest electronics retailer, which makes it a tempting target for investors looking for alternatives to recession-constrained businesses in the United States, Europe, and developed markets in Asia.

Leveraged buyout guru Henry Kravis, cofounder of the legendary private equity firm Kohlberg Kravis Roberts, tells Forbes that he believes private equity will come back from the hit it has taken from the financial crisis.

"It's not dead at all, but it will take different forms," he said.

Kravis compares the current economic environment to 1979, when, the U.S. economy was struggling, inflation was at 13%, unemployment at 11%, and zero financing was available. But then, of course, followed the explosion of private equity in the 1980s and 1990s.

Buyout funds managed by private equity giants Apollo Management LP and Blackstone Group LP (NYSE: BX) are among a growing number of limited partnerships that have experienced sharp declines in value, reports the Wall Street Journal, which highlights the economy's impact on such funds, as well as the influence of mark-to-market accounting.

Apollo and Blackstone recently disclosed to investors the values of their last buyout funds at year-end. Apollo Investment Fund VI LP, a $10.1 billion investment vehicle that closed in 2005, was held at 34% below cost. Perhaps the most notable Fund VI deal is Harrah's Entertainment Inc., which has struggled with its debt covenants. Apollo and TPG Capital LP acquired Harrah's in January 2008 for $27.8 billion.

Station Casinos (NYSE: STN) volatility Elevated as Arbitrage spread widens. STN, a gaming and entertainment company owns and operates eight major hotel/casino properties & six smaller properties in Las Vegas. STN is recently down $1.61 to $81.30. STN Chairman & Chief Executive Frank J. Fertitta & Colony Capital expect to close on their $90 purchase of STN before year's end. STN October option implied volatility of 29 is above its 32-week average 17 of according to Track Data, suggesting larger price risks.

First Data (NYSE: FDC) volatility Elevated as Arbitrage spread widens. FDC, the world's largest processor of credit-card payments, announced on April 2 it would be purchased by Kohlberg Kravis Roberts & Co. (KKR) for $29 billion. FDC shareholders will receive $34 in cash for each share. FDC is recently trading down 81 cents to $30.20. The deal is expected to close in the third quarter. FDC September option implied volatility of 33 is above 16-week average of 17 according to Track Data, suggesting larger risk.

Guitar Center (NYSE: GTRC) volatility Elevated as Arbitrage spread widens. GTRC is recently down $1.46 to $55.47. GTRC announced on June 27 it would be acquired by Bain Capital for $63; the total transaction value is $2.1 billion. GTRC September option implied volatility of 26 is above its 7-week average of 15 according to Track Data, suggesting larger risk.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Goldman Sachs Group Inc. (NYSE:GS) is planning to raise $19 billion to $20 billion for the largest corporate buyout fund ever.

This isn't a total shock. As Reuters points out, rival bankers have argued that Goldman was excluded from the Blackstone Group IPO because it's viewed as too much of a competitor. Goldman Chief Executive Lloyd Blankfein disputes this characterization.

Last month, Goldman joined forces with Kohlberg Kravis Roberts & Co. and Texas Pacific Group for the $45 billion TXU buyout, the largest ever.

Buyout funds are surging in popularity because of the growing demand by large investors for alternatives to stocks and bonds

But this is far from a sure thing.

``They have been leaders in identifying new trends and clearly this is where they feel their profit margins have the most growth opportunity,'' said Financial Advisory Service portfolio manager Douglas Ciocca told Bloomberg News. ``But this is risky if it decreases their liquidity.''

It will be interesting to watch to see how private equity firms and rivals on Wall Street react to Goldman's move.

Meanwhile, I bet hotel rooms are booking up fast near Goldman's headquarters in New York from companies both large and small eager to be acquired.

Laureate Education (NASDAQ:LAUR) is in the process of a $3.1 billion buyout deal with Kohlberg Kravis Roberts, Citigroup Private Equity and SAC Capital Management.

The problem is that shareholders hate the deal. Select Equity is going to vote "no," as will T. Rowe Price Associates. Now, there is another dissenter: BlackRock (NYSE:BLK), according to a story in TheDeal.com (subscription required.)

Basically, shareholders think Laureate still has lots of growth potential (especially in foreign markets) and that the $60.50 buyout offer does not reflect this. Counting up the votes for the three dissenters, it is still below 20%. But if a couple more shareholders join the mutiny, it could mean this deal falls apart.

Although Wall Street is not betting on that. Laureate's current stock price is $58.55. You may also check out Select Equity's analysis on the deal at the SEC website.

Tom Taulli is the author of various books, including The Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.