While Carlyle Group co-founder David Rubenstein has said the private equity sector had fallen into the “purgatory age” to atone for past sins of success, Ripplewood Holdings CEO Tim Collins said on Thursday that the “golden age” was still to come.

Collins remained positive even though buyout volume has dropped 53 percent this year to $26.0 billion, down from $55.1 billion a year ago, according to research firm Dealogic. Financial sponsor deals accounted for 7 percent of total M&A volume this year, down from 11 percent a year ago.

“The golden age is when capital is scarce, courage is scarce and you can use your capital, not only to create extraordinary returns but to play a really important role in this transition period in the economy,” Collins said.

“I think it’s probably the environment over the next two or three years,” Collins said on the sidelines of the 11th Super Return private equity and venture capital conference in Munich.

What’s next?

“After the purgatory age, we’ll see the platinum age,” Rubenstein had said in January at the Wharton Private Equity and Venture Capital Conference. “The problems with financing and the problems explaining what we’re doing will go away…private equity is better than anything you can legally do with your money.”

(Additional reporting by Megan Davies)